New Delhi: The growth slowdown that India is experiencing now will not continue for long as markets worldwide are at a better place in January 2020 than what they were last year, IMF chief Kristalina Georgieva said at World Economic Forum 2020. The IMF’s World Economic Outlook Update revised India’s 2020 growth forecast to 5.8 per cent, down 0.9 percentage point from the previous estimate. For 2021, the estimate is 6.5 per cent. Also Read - As IMF Lowers India's Growth Forecast, P Chidambaram Predicts Government Attack on Gita Gopinath

In Davos, the IMF chief said that the factors driving this positive momentum include receding trade tension after the US-China first phase trade deal and synchronised tax cuts, among others. Also Read - IMF Slashes India's Growth Estimate For 2019 to 4.8%, Projects to Improve in 2020

“We had a downgrade in one large market India but we believe that’s temporary. We expect momentum to improve further going ahead. There are also some bright spots like Indonesia and Vietnam,” she noted. She further said a number of African countries are doing very well, but some other nations like Mexico are not. Also Read - India's Growth Rate Didn't Match Increase in Jobs: IMF

India reported GDP growth rate of 4.5 per cent which is a 26-quarter low. The government has projected fiscal 2020 growth at 5 per cent. All eyes are now on Budget 2020 scheduled to be held on Fenruary 1. It is to be seen whether the ministry announces

(With PTI Inputs)