India: On Tuesday, October 11, the International Monetary Fund (IMF) reduced its prediction of India’s economic growth in 2022 to 6.8% – 6.1%, joining other international organizations that have similarly decreased their growth projections for India.
IMF Growth Forecast: 2023
RSA🇿🇦: 1.1%https://t.co/VBrRHOfbIE #WEO pic.twitter.com/0TDJbgSuka
— IMF (@IMFNews) October 11, 2022
India’s GDP is anticipated to be the quickest among major economies, despite the modification. China (4.4%), Saudi Arabia (3.7%), and Nigeria (3%), which lagged India, were the next highest. The US is expected to increase by 1%, but degrowth was predicted for Russia, Italy, and Germany.
The IMF predicted that India will expand at a rate of 7.4% for the current fiscal year, which began in April 2022. This estimate was 0.8% lower than the 8.2% forecast made in January.
India’s growth was estimated to be 8.7% during the fiscal year 2021–2022 (April 2021–March 2022).
This year’s World Economic Outlook report, released on Tuesday, contained the IMF’s most recent prediction. The report showed a weaker-than-anticipated second-quarter performance and a more muted external demand.
The IMF also predicted a global slowdown from the 6% reported in the previous fiscal year to 3.2% in 2022 and 2.7% in 2023. This projection is the worst since the catastrophe brought on by COVID-19 in 2001.
The major economies, like the US and China, have experienced notable slowdowns, according to the IMF report.
“The global economy continues to face steep challenges, shaped by the lingering effects of three powerful forces: the Russian invasion of Ukraine, a cost-of-living crisis brought on by persistent and broadening inflation pressures, and the slowdown in China,” said Economic Counselor and Director of Research at the IMF Pierre-Olivier Gourinchas
Over one-third of the global economy is anticipated to decrease in the upcoming fiscal year, despite the rise of the three largest economies—the United States, the European Union, and China. In his prologue to the report, Gourinchas stated, “In short, the worst is yet to come, and for many people, 2023 will seem like a recession.”
The economy has been negatively impacted by China’s periodic lockdowns, and other components of its zero-Covid policy, as well as a slump in the real estate market, particularly in the second quarter of 2022.
— IMF (@IMFNews) October 12, 2022
IMF also predicted global economic growth. According to World Economic Outlook, the global economy will slow from 6.0% in 2021 to 3.2% in 2022 and 2.7% in 2023.