New Delhi ,may 28
The Economic Research Department of the State Bank of India (SBI) has released a detailed research report authored projecting a significant boost in India’s economic growth, driven by a recovering global economy.
The report anticipates that India’s GDP growth could touch 8 per cent in FY24, supported by strong performance across various economic indicators and favorable monsoon conditions.
The report also highlights the potential impact of global economic resilience on India’s growth trajectory.
Despite the challenges faced by the global economy, including geopolitical tensions and extreme weather events, global growth remains resilient, supported by easing inflationary pressures and strong employment conditions.
The International Monetary Fund (IMF) in its April 2024 World Economic Outlook (WEO) raised the global growth forecast for 2024 to 3.2 per cent, an improvement from its earlier projections.Global headline inflation is expected to decline from an annual average of 6.8 per cent in 2023 to 5.9 per cent in 2024, and further to 4.5 per cent in 2025, according to IMF estimates.
This reduction in inflation is expected to prompt some central banks, particularly the European Central Bank (ECB), to reinvigorate growth efforts.
The Reserve Bank of India (RBI) has projected Q4 FY24 Real GDP growth at 7.3 per cent, with Q1 FY25 expected to reach 7.5 per cent. For the full year FY25, GDP growth is anticipated to be 7.0 per cent.
SBI’s in-house developed Artificial Neural Network (ANN) model, using 30 high-frequency indicators, forecasts Q4 FY24 GDP growth at 7.4 per cent.
