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<\/p>\nNew Delhi: Emerging markets have demonstrated remarkable resilience in the face of recent global crises, thanks to robust monetary policy frameworks and a commitment to inflation targeting, according to IMF chief economist Gita Gopinath.<\/p>\n
In a post on the X social media platform, Gopinath highlighted that clear and effective communication would be crucial for central banks to maintain their credibility and anchor inflation expectations during uncertain times.<\/p>\n
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“Kudos to emerging markets. They’ve shown tremendous resilience after facing tough challenges like the pandemic and the energy crisis,” Gopinath remarked during a recent IMF meeting, a video of which she shared on X. She noted that this resilience stemmed from the strong monetary frameworks, particularly the inflation-targeting regimes that many countries have built and maintained with credibility.<\/p>\n
Among these emerging markets, India stands out as the world\u2019s fastest-growing major economy, with projections indicating that it will be the only country to achieve over 6% growth in the next two years, according to an IMF report. The report, however, has downgraded growth forecasts for over 120 countries.<\/p>\n
“Our ‘April 2025 World Economic Outlook’ projects global growth to slow to 2.8% in 2025, with 127 countries\u2014representing 86% of global GDP\u2014experiencing downward revisions,” Gopinath explained.<\/p>\n
She added that moving forward, trade policy clarity and predictability would be essential for sustaining growth, alongside addressing structural challenges to rebuild resilience.<\/p>\n
India\u2019s economy is forecast to grow by 6.2% in 2025 and 6.3% in 2026, a rate that is more than double the growth forecast for China, which is expected to grow at 4% in 2025 and 4.6% in 2026.<\/p>\n
Gopinath emphasised the importance of focusing on sound communication regarding inflation targeting, noting that this would be critical for emerging markets in the coming years.<\/p>\n
Meanwhile, the Reserve Bank of India\u2019s (RBI) Monetary Policy Committee (MPC) has reduced the policy repo rate by 25 basis points to 6%, effective immediately. This move is aimed at boosting lending and investment amid growing global uncertainties.<\/p>\n
As trade tensions resurface, global economic conditions remain volatile, with fluctuations in crude oil prices, a weakening US dollar, softening bond yields, and corrections in equity markets. Despite these challenges, India\u2019s economic outlook has shown signs of improvement, particularly with a decline in food inflation, offering some relief, though global and weather-related risks remain.<\/p>\n","protected":false},"excerpt":{"rendered":"New Delhi: Emerging markets have demonstrated remarkable resilience in the face of recent global crises, thanks to robust…\n","protected":false},"author":2,"featured_media":55311,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3091],"tags":[331,51,29346,29347,29349,29348,2441,17436,16,2844,15],"class_list":{"0":"post-55310","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-banks","9":"tag-business","10":"tag-emerging-market","11":"tag-gita-gopinath","12":"tag-imf-chief","13":"tag-inflation-targeting","14":"tag-markets","15":"tag-monetary-policy","16":"tag-uk","17":"tag-uncertainty","18":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114411134662975565","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/55310","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=55310"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/55310\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/55311"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=55310"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=55310"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=55310"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}