Expect govt attack on Gita Gopinath: P Chidambaram on IMF India forecast
IMF predicts India will grow at4.8 percent in 2019 and at 5.8 percent in 2020.The second figure is the biggest markdown for any emerging market.
Former Finance Minister P Chidambaram feels government ministers could train their guns on the International Monetary Fund (IMF) and its India-Born chief economist, Gita Gopinath, after the Fund announced reduced growth forecasts for India.
Chidambaram, a senior Congress leader, said he wouldn't be surprised if India grew slower than 4.8 per cent in 2019-20.
Chidambaram said that "IMF Chief Economist Gita Gopinath was one of the first to denounce demonetisation...I suppose we must prepare ourselves for an attack by government ministers on the IMF and Dr Gita Gopinath,"
IMF Chief Economist Gita Gopinath was one of the first to denounce demonetisation.— P. Chidambaram (@PChidambaram_IN) January 21, 2020
I suppose we must prepare ourselves for an attack by government ministers on the IMF and Dr Gita Gopinath.
Reality check from IMF. Growth in 2019-20 will be BELOW 5 per cent at 4.8 per cent.— P. Chidambaram (@PChidambaram_IN) January 21, 2020
Even the 4.8 per cent is after some window dressing. I will not be surprised if it goes even lower.— P. Chidambaram (@PChidambaram_IN) January 21, 2020
Gita Gopinath said the downgrade for India was responsible for the IMF trimming down global growth forecasts.
The IMF chief economist said that “We have projected global growth at 2.9 per cent for 2019 and 3.3 per cent for 2020, which is 0.1 percentage point lower than the October estimates. The vast majority of it comes from our downgrade for India which was quite significant for both years,"
Asked about the extent to which the economic slowdown in India had impacted global forecasts, Gita Gopinath said it was "over 80 per cent".