India to grow faster than any other economy at 7.5%

But the outlook in 2015 is generally weakening, with growth for these economies as a group projected to decline from 4.6 percent in 2014 to 4 percent in 2015.

The worldwide Monetary Fund cut its forecast for India’s economic growth, but said the country is still the fastest growing major economy in the world.

“Commodity prices are notoriously hard to predict, but there is a general agreement among analysts that they will likely remain low, given ample supplies and weak prospects for global economic growth”, as written in the report. Seoul has been giving its own hints that reaching its 3.1% growth projection will be a tall order.

He told reporters that an unprecedented lending spree has come to an end with the plunge in prices for oil, minerals and other commodities that economists attribute to China’s slowdown.

It highlighted lower oil and commodity prices, a sharper-than-expected slowdown in China, financial market volatility, Greek concerns, appreciation in the dollar and increased political tension in the likes of Ukraine and the Middle East, as among the factors which could hit growth. India grew 7.3% past year. “We project a rebound for next year, with 4.5% growth in emerging and developing economies, with a further pick-up in subsequent years”, said Obstfeld, adding that this would reflect “a gradual normalization of conditions” in Brazil and Russian Federation.

The report was released on the eve of the IMF-World Bank annual meetings, being held in Lima, at which global policy makers review the state of the global economy and hash over important issues. France’s outlook was unchanged at 1.2 percent in 2015 and 1.5 percent in 2016.

Vinals said over-borrowing in China, where an August devaluation sent global markets reeling, amounts to almost 25 percent of the Asian power’s economic output and will need to be managed gingerly. It also called for growth stimulation measures and prompt structural reforms for developing economies.

“With the revival of consumer and business sentiment, the incipient recovery of investment is expected to contribute more to growth going forward”, it said.

The IMF advised emerging markets to be ready for the US to tighten monetary policy, urged advanced economies to address “crisis legacies” and suggested nations consider the “compelling” case for public infrastructure investment at a time of very low long-term interest rates.