New Delhi: The Organisation for Economic Co-operation and Development (OECD) has forecasted that the economic expansion within the G20 economies, encompassing India, is poised to remain steady, as per its latest report.
The Paris-based institution has indicated that there will be a continuation of domestic demand growth within emerging economies, such as India and Indonesia.
"It is projected that there will be a sustained growth in domestic demand within India and Indonesia over the forthcoming two years," the OECD report states.
Furthermore, the OECD has revised upward India's GDP growth projections by 10 basis points, with an estimation of 6.7 percent for the fiscal year 2024-25 and an increase of 10 basis points for the fiscal year 2025-26, standing at 6.8 percent.
Indonesia is expected to experience growth of 5.1 percent in 2024 and 5.2 percent in 2025.
During the fiscal year 2023-24, India's GDP witnessed an impressive expansion of 8.2 percent, maintaining its position as the fastest-growing major economy. The economy grew by 7.2 percent in the fiscal year 2022-23 and 8.7 percent in the fiscal year 2021-22.
A number of international rating agencies and multilateral organizations have also adjusted India's growth projections upward.
In the case of China, the economic expansion is anticipated to gain momentum in the latter half of 2024, propelled by an increase in government spending following a recent surge in local government bond issuance.
However, the OECD report notes that the ongoing correction in the real estate sector is expected to persist, and the lack of adequate social safety nets and soft consumer confidence are projected to continue hindering private consumption growth, with GDP growth estimated at 4.9 percent in 2024 and 4.5 percent in 2025.
Brazil is expected to sustain some of the economic momentum observed in the first half of 2024, supported by higher fiscal spending.
The report also highlights that growth has been relatively robust in several G20 economies, including the United States, Brazil, India, Indonesia, and the United Kingdom.
The aggregate consumer price inflation across the G20 economies is anticipated to experience a significant decline, attributed to reduced commodity prices and a gradual easing of service price inflation, as pressures related to labor costs moderate.
The central inflation rate for the G20 is expected to decrease from 6.1 percent in 2023, to 5.4 percent in 2024, and further to 3.3 percent in 2025.
The OECD report further notes that "Inflation in emerging market economies is expected to persist at a level generally higher than that of advanced economies, albeit with a gradual easing."
According to the OECD, inflation is projected to return to target levels in the majority of G20 countries by the end of 2025.
