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

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.

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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.

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IMF: Important Takeaways

• IMF Headquarters: Washington DC, USA
• IMF Managing Director: Kristalina Georgieva