The International Monetary Fund (IMF) has released its forecast for the global economy growth in 2023. In this, the economic growth forecast for India has been reduced once again. The IMF has projected the country’s GDP growth to be 6.1% for the financial year 2023, cutting the current estimate by 0.60%.
IMF Growth Forecast: 2023
USA🇺🇸: 1%
Germany🇩🇪: -0.3%
France🇫🇷: 0.7%
Italy🇮🇹: -0.2%
Spain🇪🇸: 1.2%
Japan🇯🇵: 1.6%
UK🇬🇧: 0.3%
Canada🇨🇦: 1.5%
China🇨🇳: 4.4%
India🇮🇳: 6.1%
Russia🇷🇺: -2.3%
Brazil🇧🇷: 1%
Mexico🇲🇽: 1.2%
KSA🇸🇦: 3.7%
Nigeria🇳🇬: 3%
RSA🇿🇦: 1.1%https://t.co/VBrRHOfbIE #WEO pic.twitter.com/0TDJbgSuka— IMF (@IMFNews) October 11, 2022
However, without changing India’s GDP growth forecast for the financial year 2024, it has been kept at 6.1%. Earlier in July, the IMF had cut India’s GDP growth forecast by 0.80% for the financial years 2023 and 2014.
The IMF has also lowered the growth forecast for the global economy for 2023. The agency has attributed the low growth of the global economy to the Russia-Ukraine war, economic slowdown, the effect of the corona epidemic, rising interest rates.
According to the IMF, the growth rate of the global economy is expected to be 2.7% next year. Earlier in July, it was estimated to be 2.9%. At the same time, for this year, the growth rate of the global economy has been estimated at 3.2%. The global growth rate in the last financial year was 6%.
The estimates released by the IMF regarding India’s economic growth are lower than the estimates of the Reserve Bank of India (RBI). In September this year, the RBI had projected the country’s GDP growth. The country’s GDP growth was projected to be 7% for the financial year 2023, reducing by 0.20%.
IMF says, “World’s 3 largest economies—US, China & the euro area—will continue to stall. We expect global inflation to peak at 9.5% this year before slowing to 4.1% by 2024”. The IMF has also slashed estimates for the world’s two largest economies, the US and China. According to the IMF, America’s economic growth will be 1.6% in the current financial year. This estimate is 0.7% lower than the July estimate. On the other hand, China’s economy is likely to grow at a rate of only 3.2% this year.