The International Monetary Fund (IMF) has increased India’s growth projection to 6.8 percent for this year, up by 0.3 percent from its previous update in January 2024, as stated in the World Economic Outlook (WEO) released on Tuesday.

The IMF predicts India’s growth will remain strong at 6.8 percent in 2024 and 6.5 percent in 2025, driven by robust domestic demand and a growing working-age population.

India is expected to outperform other large economies, with China following at 4.6 percent in 2024 and 4.1 percent in 2025. Global output growth is anticipated to continue at a steady pace of 3.2 percent in 2024 and 2025, consistent with the growth rate in 2023.

“The global economy remains remarkably resilient, with growth holding steady as inflation returns to target,” noted the IMF in its report. Despite previous predictions of a recession, the world economy has stayed afloat, thanks to the banking system’s resilience and stability in major emerging markets.

Regarding oil prices, the IMF foresees a 2.5 percent year-over-year decrease to an average of $78.60 per barrel in 2024, further falling to $67.50 by 2029. The organization considers the risks to this forecast as “balanced,” with potential price fluctuations due to geopolitical tensions and changes in supply and demand dynamics.

In conclusion, the IMF’s updated projections reflect a positive outlook for India’s economic growth, with the global economy showing resilience and stability despite existing challenges and uncertainties in the international landscape.

The latest UNCTAD report forecasts global economic growth at 2.6% in 2024, just above the recessionary threshold. India’s economy stands out with a projected expansion of 6.5% due to strong public investment and service sector growth, amidst a gloomy global scenario.

The report highlights weak economic activity in Europe, particularly in countries like Germany and Italy facing industrial slowdowns and fiscal constraints. The Americas are expected to experience a slowdown, with Argentina battling severe inflation and Brazil’s growth dampened by external pressures.

In Africa, growth is projected at 3.0%, slightly up from 2.9% in 2023. However, armed conflicts and climate impacts pose challenges. The continent’s largest economies, Nigeria, Egypt, and South Africa, are underperforming, affecting overall prospects. Oceania, especially Australia, is expected to see subdued growth extending into 2024.

Global merchandise trade fell by about 1% in 2023, diverging from overall economic growth due to trade tensions and subdued global demand. Disruptions in key shipping routes, such as the Panama Canal drought and Red Sea vessel attacks, have strained merchandise trade and increased shipping costs significantly, according to the report.

In a surprising turn of events, Tesla has laid off a significant number of employees, impacting several departments and high performers within the company. The decision, reportedly due to poor financial performance, saw some departments being gutted by 20 per cent.

According to reports, the layoffs affected more than 10 per cent or nearly 14,000 workers across the US, Europe, and China. The move was made to cut costs and increase productivity in preparation for the company’s next phase of growth. Many of the laid-off employees were high performers, adding to the shock of the news.

A Tesla manager expressed their dismay, stating, “I lost 20 per cent of my team, some really good players too.” In addition to the layoffs, two high-profile executives, including the VP of Public Policy and Business Development, and the SVP of Powertrain and Energy, have also resigned from the company.

Notably, Tesla has recently abandoned plans to develop a low-cost EV priced at around $25,000. With the company set to report its first-quarter earnings next week, the layoffs and executive departures raise questions about the future direction of one of the leading electric car manufacturers in the industry.