India and Mexico are enjoying robust growth even as emerging economies as a whole are facing the harsh reality of slow growth and reversal of capital flows, IMF chief Christine Lagarde said today.
She said slow growth in China, decline in commodity prices and asynchronous monetary policies are among the challenges faced by the emerging economies. Last month at the World Economic Forum (WEF), Lagarde had said that as India is growing fast at over 7 per cent, the nature of BRICS bloc has undergone a major change, with each member showing an economic performance very different from the other. Emerging and developing economies account for about 60 per cent of global GDP, up from just under half only a decade ago. According to Lagarde, softening of growth, scale of capital outflows and recent stock market declines are cause for concern in the short term. For the first time in history, emerging market countries such as Brazil, China, India, and Russia are now among the 10 largest shareholders of the Fund,” she added.