GDP Forecast: The International Monetary Fund (IMF) has lowered India’s economic growth forecast from 8.2 to 7.4 percent. The International Monetary Fund (IMF) has said that India’s GDP growth is expected to be lower than expected due to the external impact on the economy and the tightening of monetary policy.
In its latest World Economic Outlook update, the IMF has said that due to rising inflation, the priority of governments is to control it. Policy makers have prioritized controlling inflation by further tightening monetary policy. The IMF also cut global growth forecast and warned that the world could soon be on the verge of recession. The IMF said global economic growth is likely to slow to 3.2 percent this year. This is lower than the 3.6 per cent forecast put out by the IMF in April.
The IMF said in its World Economic Outlook that after a partial improvement in the situation in 2021, there has been a decline in the growth rate by 2022. The recession in China and the Russia-Ukraine war have had negative effects.
India will continue to be one of the world’s fastest growing major economies in 2022-23 and 2023-24, despite declining growth rates. The report has projected the growth rate of only Saudi Arabia to be higher than that of India during 2022. Saudi Arabia’s growth rate is likely to be 7.6 percent.
The IMF’s growth forecast for India is the most optimistic. The Reserve Bank of India (RBI) has projected the economy’s growth rate to be 7.2 percent for 2022-23.
What is the situation of other countries?
China’s growth rate is projected to slow to 3.3 percent in 2022 from 4.4 percent. On the other hand, emerging markets and developing economies such as Russia, South Africa and Brazil are improving.
