IMF cuts India’s growth forecast due to demonetisation

Washington, Jan 16 (IANS) The IMF on Monday cut India’s growth forecast for the current fiscal by as much as one percentage point due mainly to the disruptions caused by demonetisation of 500 and 1,000 rupee notes.

In a similar vein, the fund also cut its forecast for the next fiscal by 0.4 percentage points.

The IMF had earlier predicted a 7.6 per cent growth for the India economy during the current fiscal ending March 31.

“In India, the growth forecast for the current (201617) and next fiscal year were trimmed by one percentage point and 0.4 percentage point, respectively, primarily due to the temporary negative consumption shock induced by cash shortages and payment disruptions associated with the recent currency note withdrawal and exchange initiative,” the International Monetary Fund (IMF) said in its latest World Economic Outlook (WEO) update released on Monday.

–IANS

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