IMF projections on Growth
STORIES, ANALYSES, EXPERT VIEWS
The International Monetary Fund (IMF) January 31 said it is expecting some slowdown in the Indian economy next fiscal year and projected the growth to 6.1% from 6.8% during the current fiscal ending March 31.
The IMF Tuesday released the January update of its World Economic Outlook, according to which the global growth is projected to fall from an estimated 3.4% in 2022 to 2.9% in 2023, then rise to 3.1% in 2024.
“Our growth projections actually for India are unchanged from our October Outlook. We have 6.8% growth for this current fiscal year, which runs until March, and then we're expecting some slowdown to 6.1% in fiscal year 2023. And that is largely driven by external factors,” Pierre-Olivier Gourinchas, Chief Economist and Director, Research Department of the IMF said.
“Growth in India is set to decline from 6.8% in 2022 to 6.1% in 2023 before picking up to 6.8% in 2024, with resilient domestic demand despite external headwinds,” said the IMF’s World Economic Outlook update.
He said “Another relevant point here is that if we look at both China and India together, they account for about 50% of world growth in 2023. So a very significant contribution.”
In a blog post he wrote that India remains a bright spot. Together with China, it will account for half of global growth this year, versus just a 10th for the U.S. and euro area combined, he added.