India’s Growth Forecast Cut By IMF, But Will Still Be World’s Fastest-Growing Economy

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.

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.