China decelerates steadily as India turns key growth engine: IMF chief

Global growth is forecast at roughly 3 per cent over the medium term, down from 3.7 per cent before the COVID-19 pandemic, she noted.

“Global growth patterns have been changing over the years, notably with China decelerating steadily while India develops into a key growth engine,” IMF managing director Kristalina Georgieva recently said.
She suggested Asian economics to deepen internal trade to include more final goods and more services and press forward with reforms to strengthen the service sector and access to finance.

She was addressing the opening event of the Milken Centre for Advancing the American Dream (MCAAD) in Washington, DC.

She suggested Asian economics to deepen internal trade to include more final goods and more services and press forward with reforms to strengthen the service sector and access to finance. IMF’s analysis suggests a push for more regional integration—notably by lowering nontariff barriers—could raise gross domestic product (GDP) by 1.8 per cent in the long run, she noted.

“Comprehensive business-friendly reforms, combined with progress in building the Continental Free Trade Area, could lift the real GDP per capita of the median African country by over 10 per cent,” she observed on Sub-Saharan Africa.

She recommended Europe to consider appointing a ‘single market czar’ with real authority to drive reforms forward. “Remove border frictions in the labour market, goods and services trade, energy and finance. Build a single European financial system. Build an energy union. Complete your project. And catch up with the private sector dynamism of the US,” she added.

Fibre2Fashion News Desk (DS)