New Delhi: The International Monetary Fund (IMF) reaffirmed today that India will be the fastest-growing major economy in 2018, with a growth rate of 7.4 percent that rises to 7.8 percent in 2019 with medium-term prospects remaining positive.

The IMF's Asia and Pacific Regional Economic Outlook report said that India was recovering from the effects of demonetization and the introduction of the Goods and Services Tax.

It said the recovery is expected to be underpinned by a rebound from transitory shocks as well as robust private consumption.

The report said, Medium-term consumer price index inflation is forecast to remain within but closer to the upper bound of the Reserve Bank of India's inflation-targeting band of 4 percent with a plus or minus 2 percent change.

It said, the consumer price increase in 2017 was 3.6 percent and projected it to be 5 percent in 2018 and 2019. Overall, the report said that Asia continues to be both the fastest-growing region in the world and the main engine of the world's economy.