New Delhi: The International Monetary Fund (IMF) on Tuesday cut India’s GDP growth forecast for the financial year 2023-24 by 20 basis points to 5.9%. That is lower than Reserve Bank of India’s projection of 6.4%.
Even as IMF lowered its outlook for the global economy, its projections showed India will continue to be the fastest-growing economy in the world.
The international financial agency of United Nations lowered the forecast for India for 2024-25 fiscal to 6.3% from 6.8% it had predicted three months ago.
In its World Economic Outlook report, IMF expects India’s retail inflation to be at 4.9% in FY24 and 4.4% in FY25.
China’s growth rate has been projected at 5.2% in 2023 and 4.5% in 2024, an improvement on 3% in 2022.
The USA’s growth forecast for 2023 is 1.6%, France 0.7%, while Germany and the UK are a dismal -0.1% and -0.7%, respectively.
IMF Growth Forecast: 2023
USA🇺🇸: 1.6%
Germany🇩🇪: -0.1%
France🇫🇷: 0.7%
Italy🇮🇹: 0.7%
Spain🇪🇸: 1.5%
Japan🇯🇵: 1.3%
UK🇬🇧: -0.3%
Canada🇨🇦: 1.5%
China🇨🇳: 5.2%
India🇮🇳: 5.9%
Russia🇷🇺: 0.7%
Brazil🇧🇷: 0.9%
Mexico🇲🇽: 1.8%
KSA🇸🇦: 3.1%
Nigeria🇳🇬: 3.2%
RSA🇿🇦: 0.1%https://t.co/lvRdo3zKMV pic.twitter.com/mZOsBfCYS5— IMF (@IMFNews) April 11, 2023
The global economy has been predicted to grow by 2.8% this year and 3% in 2024 — down 10 basis points each from January forecasts.
Most countries will, however, avoid recession in 2023 despite the COVID pandemic lingering and tightening financing conditions as the Russia-Ukraine war continues.
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