After World Bank, IMF too cuts India’s growth projection
A few days back, a World Bank report said that it had cut India’s real gross domestic product (GDP) growth forecast for the financial year 2022-23 (FY23) from 7.5 per cent to 6.5 per cent.
And now, the latest International Monetary Fund (IMF), in its latest ‘World Economic Outlook’ report, has put the GDP growth for FY23 to 6.8 per cent, which is down from the July projection of 7.4 per cent. This is the IMF’s steepest cut for any major economy barring USA.
The Reserve Bank of India (RBI) too had cut GDP growth prediction for FY23, from 7.8 per cent to 7 per cent.
The revised forecast for India follows weaker-than-expected 13.5 per cent growth in the April-June 2022 quarter (first quarter of FY23) and the tightening of interest rates by the world’s key central banks to control inflation.
The IMF retained its FY24 growth forecast at 6.1 per cent.
The IMF in its report states that the global GDP growth in FY23 will be only 2.7 per cent, down from the 2.9 per cent predicted in July. That for FY22 has been kept unchanged at 3.2 per cent.
The multilateral body attributed this change to “steep challenges”, primarily three: the Russian invasion of Ukraine, a cost-of-living crisis due to inflation and the economic slowdown in China.
