Indian economy to grow by 5.4 pc in 2009

In its twice-yearly World Economic Outlook released in Istanbul, the Fund lowered the projection for the next year by 0.1 per cent to 6.4 per cent.

The Indian economy grew by 5.8 per cent in the first quarter and 6.1 per cent in the second quarter of this calendar year.

The economy grew by 7.3 per cent in 2008 and 9.4 per cent in 2007. If the IMF projections prove correct, it would grow at the least rate in recent years due to the global financial crisis and drought.

The IMF  said that after a deep recession, global economic growth has turned positive and is driven by wide-ranging, coordinated public intervention that has supported demand and reduced uncertainty and risk in financial markets.

It added that in most countries, growth will be positive for the rest of the year as well as in 2010.

The Fund said trade and currency imbalances need to be addressed to make sure the rebound is sustainable.

Press Trust of India

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