IMF Lowers India’s Growth Projection To 5.9 Percent For 2023-24

IMF Lowers India’s Growth Projection To 5.9 Percent For 2023-24

• The IMF has lowered India’s economic growth projection for the current fiscal year to 5.9% from 6.1% earlier.
• IMF also lowered the forecast for the 2024-25 fiscal year to 6.3% from the 6.8% it had predicted earlier this year.
• Despite the decrease in growth rate projections, India is still the fastest-growing economy in the world.
• The IMF growth forecast is lower than projections by the Reserve Bank of India (RBI).
• China’s growth rate is projected to be 5.2% in 2023 and 4.5% in 2024, while its growth rate in 2022 was 3%.
• The global economy appears to be gradually recovering from the pandemic, with China rebounding strongly following the reopening of its economy.
• Global growth will bottom out at 2.8% this year before rising modestly to 3.0% in 2024, according to IMF Chief Economist Pierre-Olivier Gourinchas.
• This year’s economic slowdown is concentrated in advanced economies, especially the euro area and the United Kingdom.
• Despite a downward revision, many emerging market and developing economies are picking up.
• Policymakers need a steady hand and clear communication, and monetary policy should remain focused on bringing inflation down, but be ready to quickly adjust to financial developments.