Categories: Economy

IMF decreases FY23 India’s GDP growth forecast to 6.8%

IMF decreases FY23 India's GDP growth forecast

IMF decreases FY23 India’s GDP growth forecast: In light of lower-than-anticipated output in the second quarter and more sluggish external demand, the International Monetary Fund (IMF) reduced India’s growth prediction for FY23 from 7.4% forecasted in July to 6.8%. India’s growth projection for FY23 has undergone three decreases, starting from 9% in January of this year.

Buy Prime Test Series for all Banking, SSC, Insurance & other exams

IMF decreases FY23 India’s GDP growth forecast: Key Points

According to the IMF’s premier World Economic Outlook (WEO), which was published in Washington, DC, India’s growth is predicted to further decelerate in FY24, reaching 6.1%.
Only Saudi Arabia is projected by IMF to develop at a greater rate than India in 2022, at a rate of 7.6%.
The forecast for China’s growth by IMF in 2022 has been lowered by 0.1 percentage point to 3.2%.
The multilateral lender, IMF warned policymakers that “storm clouds” were forming and declared that the worst was still to come for the struggling global economy.
The dollar may gain further, inflation may continue to rise, and widespread developing market debt trouble is conceivable, according to the IMF.
According to the IMF, the three largest economies—the US, the EU, and China—will continue to stagnate in 2023, which will seem like a recession to many people.

Gross Direct Tax Collections For FY 2022-23 Register Growth Of 25.90%

IMF on India’s GDP forecast

The 3.2% projection from July’s forecast remains the same for this year’s global growth.
However, that forecast for 2023 is lowered to 2.7% from the IMF’s July estimate of 2.9%.
The Reserve Bank of India’s most recent estimate of 7%, which was also reduced from a previous estimate of 7.2%, and the IMF’s prognosis for India for FY23 are comparable.
India’s annual growth rate was reduced by the World Bank last week from 7.5% to 6.5%.

The current account deficit for India is anticipated to increase to 3.5% of GDP in FY23 before decreasing to 2.9% in FY24. Retail inflation in the nation is predicted to stay high in the current fiscal year at 6.9% before dropping to 5.1% in FY24. That is lower than the central bank’s goal rate, which is 4% with a tolerance range of 2% on each side.

World Bank Hints That Global Economy On A Steep Slowdown