Current Affairs - Economy - Discussion

According to a Reuters poll of economists, India will reach the top position among the world's fastest-growing major economies in 2018, but increasing trade tensions between the United States and China might hinder that growth. The recent tit-for-tat import tariffs introduced by the US and China have created concerns about a global trade war. Otherwise a strong world economy could be developed. The recent poll was taken on 11th to 18th April 2018. It has predicted that India's economy will expand 7.4 % in the fiscal year that began in April 2018. Increased government spending prior to national elections next year is expected to be inflationary. Inflation is forecast to average 4.7 % in the fiscal year ending in March 2019, and 4.9 % the following year, according to the poll. The Reserve Bank of India has been forecast to keep rates on hold until the second half of next year, according to the poll. But economists expect a repo rate increase to the quarter ending September next year from a move in the first three months of 2019.