Chidambaram forecasts attack on IMF

Chidambaram forecasts attack on IMF

Agency News

The Congress leader, Mr. P Chidambaram, on Tuesday said that an attack on the International Monetary Fund (IMF) and its Chief Economist, Ms. Gita Gopinath, by government ministers was imminent following the organisation's downward revision of the Indian economy's growth.

Dr Gopinath had said that India needs a lot of investment and it is important to encourage it, in reference to the governments cold-shoulder to Amazon CEO Jeff Bezos during his visit last week.

'The IMF Chief Economist Gita Gopinath was one of the first to denounce demonetisation. I suppose we must prepare ourselves for an attack by government ministers on the IMF and Dr Gita Gopinath,' Mr Chidambaram tweeted.

The IMF on Monday slashed India's growth forecast to 4.8 per cent, a cut of 1.3 per cent in just three months. In its World Economic Outlook released in Davos, the IMF has said, 'Domestic demand has slowed more sharply than expected amid stress in the nonbank financial sector and a decline in credit growth.'

Mr. Chidambaram said the revision was 'window dressing' and was likely to go even lower.