IMF projects India's economic growth at 9.7 pc in 2010

Washington, Oct 6 (PTI) The International Monetary Fund
has projected the Indian economy will grow by 9.7 per cent in
2010 and 8.4 per cent in the next fiscal, driven by robust
industrial production and macro-economic performance.
However, neighbouring China is expected to grow at an
even faster rate of 10.5 per cent in 2010 and and 9.6 per cent
in 2011, driven by domestic demand, the IMF said in its latest
World Economic Outlook report.
Advanced economies, on the other hand, are projected to
grow by just 2.7 per cent in 2010 and 2.2 per cent in 2011,
the IMF report said, adding that global trade is forecast to
expand by 4.8 per cent in 2010 and 4.2 per cent in 2011, with
a temporary slowdown during the second half of 2010 and the
first half of 2011.
"India's macroeconomic performance has been vigorous,
with industrial production at a two-year high. Leading
indicators -- the production manufacturing index and measures
of business and consumer confidence -- continue to point up,"
the IMF said.
"Growth is projected at 9.7 per cent in 2010 and 8.4 per
cent in 2011, led increasingly by domestic demand. Robust
corporate profits and favorable external financing will
encourage investment," it said.
"Recent activity (10 per cent year-over year growth in
real GDP at market prices in the second quarter) was driven
largely by investment and the contribution from net exports is
projected to turn negative in 2011 as the strength in
investment further boosts imports," the IMF said.
According to the World Economic Outlook report, growth in
emerging Asia economies stands at about 9.5 per cent, with
robust demand from China, India, and Indonesia benefiting
other Asian economies.
In China, a major fiscal stimulus, a large expansion of
credit and a number of specific measures to boost household
income and consumption increased domestic demand growth to
almost 13 per cent in 2009, contributing to a large decline in
the current account surplus.
The recovery is now well established, and a transition
from public stimulus to private-sector-led growth is underway,
it said.
Latin America has also recovered strongly, with real
Gross Domestic Product growth at about 7 per cent.
The recovery in Latin America is being led by Brazil,
where real GDP growth has been close to 10 per cent since the
third quarter of 2009 and the economy is now showing signs of
overheating, the report said.