The International Monetary Fund issued a regional forecast for India this month and predicted that the South Asian country will slow down because of the cash crunch bring about by the demonetization despite the fact that its economic growth would likely remain strong within the Asia Pacific region compared with the previous outlook in October. According to the report of National Accounts Statistics, the economic impact of the cash insufficiency may be downplayed in the least short term. In addition to it, an analysis made by the staff of IMF states that the projections in October 2016, the negative cash flow seems slow amid the financial year 2016-17 nearly four to five percentage points. While the growth in FY 2017-18 was almost half of its percent point.
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