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IMF projects India's growth projection to be 6.1% for 2023

India Today 31-01-2023 India Today Web Desk
IMF projects India's growth projection to be 6.1% for 2023 © Provided by India Today IMF projects India's growth projection to be 6.1% for 2023

The International Monetary Fund (IMF) on Tuesday released the January update of its World Economic Outlook and said it was expecting some slowdown in the Indian economy next fiscal year and projected the growth to 6.1 per cent from 6.8 per cent during the current fiscal ending March 31.

According to the latest World Economic Outlook, the global growth is projected to fall from an estimated 3.4 per cent in 2022 to 2.9 per cent in 2023, then rise to 3.1 per cent in 2024.

For 2024, the IMF said global growth would accelerate slightly to 3.1%, but this is a tenth of a percentage point below the October forecast as the full impact of steeper central bank interest rate hikes slows demand.

IMF chief economist Pierre-Olivier Gourinchas said recession risks had subsided and central banks are making progress in controlling inflation, but more work was needed to curb prices and new disruptions could come from further escalation of the war in Ukraine and China's battle against Covid-19.

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"We have to sort of be prepared to expect the unexpected, but it could well represent a turning point, with growth bottoming out and then inflation declining," Gourinchas was reported as saying by Reuters.

"Our growth projections actually for India are unchanged from our October Outlook. We have 6.8 per cent growth for this current fiscal year, which runs until March, and then we're expecting some slowdown to 6.1 percent in fiscal year 2023. And that is largely driven by external factors," Pierre-Olivier Gourinchas, Chief Economist and Director, Research Department of the IMF told reporters here.

"Growth in India is set to decline from 6.8 per cent in 2022 to 6.1 percent in 2023 before picking up to 6.8 per cent in 2024, with resilient domestic demand despite external headwinds," said the IMF's World Economic Outlook update.

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According to the report, growth in emerging and developing Asia is expected to rise in 2023 and 2024 to 5.3 per cent and 5.2 per cent, respectively, after the deeper-than-expected slowdown in 2022 to 4.3 per cent attributable to China's economy.


In its 2023 GDP forecasts, the IMF said it now expected US GDP growth of 1.4%, up from 1.0% predicted in October and following 2.0% growth in 2022. It cited stronger-than-expected consumption and investment in the third quarter of 2022, a robust labor market and strong consumer balance sheets.

(With agency input)

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