IMF projects slowdown in Indian economy in fiscal year 2023 | Check World Economic Outlook report
IMF on Indian economy: According to the projection, growth in India is set to decline from 6.8% in 2022 to 6.1% in 2023 before picking up to 6.8% in 2024, with resilient domestic demand despite external headwinds.
IMF on Indian economy: The International Monetary Fund (IMF), on Tuesday, predicted some slowdown in the Indian economy next fiscal year, projecting the growth to 6.1% from the current 6.8%. On Tuesday, the IMF released its World Economic Outlook report for the month of January.
According to this projection, global growth is expected to fall from an estimated 3.4% in 2022 to 2.9% in 2023 before increasing to 3.1% in 2024.
“Our growth projections actually for India are unchanged from our October Outlook. We have 6.8 % growth for this current fiscal year, which runs until March, and then we're expecting some slowdown to 6.1 %in the fiscal year 2023. And that is largely driven by external factors,” Pierre-Olivier Gourinchas, Chief Economist and Director, Research Department of the IMF told the media.
What IMF’s World Economic Outlook update claim?
“Growth in India is set to decline from 6.8% in 2022 to 6.1% in 2023 before picking up to 6.8% in 2024, with resilient domestic demand despite external headwinds,” stated the IMF’s World Economic Outlook update.
According to the report, growth in emerging and developing Asia is likely to rise in 2023 and 2024 to 5.3% and 5.2%, respectively, after the deeper-than-expected slowdown in 2022 to 4.3%attributable to China’s economy.
“Another relevant point here is that if we look at both China and India together, they account for about 50% of world growth in 2023. So a very significant contribution,” he said, adding that the IMF had a positive view on India in its October forecast and that positive view is largely unchanged.
Global slowdown to be more pronounced: IMF
The report further stated that for advanced economies, the slowdown will be more pronounced, with a decline from 2.7% last year to 1.2% and 1.4% this year and the next year.
ALSO READ: IMF projects 6.8 % growth in current fiscal, 6.2% for next fiscal for India
Meanwhile, Gourinchas anticipated that nine out of 10 advanced economies will likely decelerate. He further said that the conditions of Euro are more challenging despite signs of resilience to the energy crisis, a mild winter, and generous fiscal support.
(With PTI inputs)