World Economic Outlook: October 2019

November 7, 2019    

World Economic Outlook: October 2019

About the Index 

  • World Economic Outlook is a survey conducted by International Monetary Fund (IMF) and is published twice a year i.e in the spring and fall.
  • Published on: October 15, 2019

Global Findings

  • The global economy is facing a synchronized slowdown as the growth for 2019 has downgraded to 3% which is the slowest pace since the global financial crisis in 2008-09. It shows 0.3% downgrade from the April, 2019 World Economic Outlook.
  • Rising trade barriers, macroeconomic strain causing factors, low productivity growth are some of the key factors behind this slowdown.
  • In 2019-20, growth for advanced economies has been projected to slow to 1.7% while developing economies are projected to experience a growth of 3.9% in 2019 to 4.6% in 2020.
  • Growth has been projected to pick up 3.4% in 2020 which is 0.2% less than that forecasted in April, 2019.
  • Recent reports have witnessed a global vehicle purchase decline by 3% in 2018.
  • The volume of global trade in the first half of 2019 stood just 1% above its value in 2018.
  • As per the reports, China’s economic growth will slow down to 5.8% in the next year.
  • US is expected to perform better with a growth rate of 2.1% in 2019 and 2.4% in 2020
  • For European countries, growth is projected to be only 1.2% in 2019 and 1.4% in 2020.
  • German economy is expected to grow at the rate of 0.5% this year.

India’s Performance

  • India retains its rank as the world’s fastest growing major economy tying up with China.
  • India’s projected growth rate is 6.1% for the current fiscal year while it was 6.7% in August, 2019.
  • For 2020, India’s projected growth rate is 7%.
  • Corporate and environmental regulatory uncertainty, sector-specific weakness in the automobile sector and real estate are the major factors contributing to the cut in the growth projections for India.

Projected growth rate for advanced economies

For 2019

  1. United States-2.4%
  2. Spain-2.2%
  3. Canada-1.5%
  4. UK, Europe, France-1.4%

For 2020

  1. United States-2.1%
  2. Canada and Spain-1.8%
  3. Europe and U.K.-1.4%

Projected growth rate for developing economies

For 2019

  1. India and China-6.1%
  2. ASEAN 5-4.8%
  3. Sub-Saharan Africa-3.2%
  4. Nigeria-2.3%

For 2020

  1. India-7%
  2. China-5.8%
  3. ASEAN 5-4.9%
  4. Sub-Saharan Africa-3.6%
  5. Middle-east and Central Asia-2.9%

MCQs

Q: 1.) Which organization releases World Economic Outlook Report?
a.) World Bank
b.) International Monetary Fund
c.) Asian Development Bank
d.) All the Above
e.) None of the Above
Answer-b.) International Monetary Fund

Explanation-

World Economic Outlook is released twice a year based on the survey conducted by International Monetary Fund.

Q: 2.) According to the World Economic Outlook October 2019, to what % the global economy has downgraded in 2019?
a.) 5
b.) 2.5
c.) 4
d.) 3
e.) 1
Answer-d.) 3

Explanation-According to World Economic Outlook October 2019, the global economy has downgraded to 3% in 2019 which is slowest pace since the global economic crisis of 2008-09.

Q: 3.) According to the world Economic Outlook October 2019, which is the fastest growing developing economy for the fiscal year 2019?
a.) India
b.) China
c.) Both a.) and b)
d.) ASEAN 5
e.) None of the above
Answer-c.) Both a.) and b.)

Explanation-According to World Economic Outlook October 2019, India and China have been projected as the fastest growing developing economies for the fiscal year 2019 and their projected growth rate is 6.1%

Q: 4.) According to World Economic Outlook October 2019, what is India’s projected growth rate for 2020?
a.) 5%
b.) 6.5%
c.) 7%
d.) 8.5%
e.) 8%
Answer-c.) 7%

Explanation-According to World Economic Outlook October 2019, India has been projected as the fastest growing developing nation in 2020 with a projected growth rate of 7%.

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    World Economic Outlook: October 2019 4.5 5 Yateendra sahu November 7, 2019 About the Index  World Economic Outlook is a survey conducted by International Monetary Fund (IMF) and is published twice a year i.e...


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