International Monetary Fund: Daniel Leigh, division chief for the International Monetary Fund, expressed confidence in India’s economy on Tuesday, calling it a “very strong economy.” India, he claimed, is currently one of the economies in the world that is growing quickly. “Yes, as of 2022, India will have a 6.8 growth rate. Remember that this is currently one of the shining examples of the world economy. What’s occurring here is also a series of historical revisions with such a strong growth rate reducing down to 5.9 with a -.2 revision compared to January,” said Leigh.
IMF revised its growth prediction for India from 6.1 percent to 5.9 percent
According to Anne-Marie Gulde-Wolf, Deputy Director for Asia and Pacific Department, IMF, the Indian economy would continue to perform well and keep its position as one of the fastest growing economies in the world. The announcement was made at a time when the IMF revised its growth prediction for India from 6.1 percent to 5.9 percent for the years 2023–2024. The Indian economy, which is still one of the fastest-growing in the world and the fastest-growing in Asia, is doing well, he said.
India’s inflation is expected to fall to 4.9% this fiscal year
Returning to Leigh, he continued, “We understand that 2020–2021 has actually been a lot better than we imagined, so actually there’s less room for catching up. Therefore, since consumers have already had more time to catch up, the pent-up demand that was driving our previous projection would be smaller. Thus, the reason for the downward revision this year. Then we rise to 6.3 the following year, a very robust economy that is essential for enabling India to keep advancing towards greater living standards and producing the jobs that are required. India’s inflation is expected to fall to 4.9% this fiscal year and further to 4.4% the next year, according to the IMF.
Worldwide output will decrease by an additional 0.3 percentage points
The Reserve Bank of India’s (RBI) projection is higher than the IMF’s growth expectation. The central bank forecast GDP growth of 6.4% in the current fiscal year that began on April 1 and 7.0% for FY 2022–23. The international lender also raised worries about the risks that rising interest rates pose to the financial industry, including inflation, debt, and other issues. It stated that the worldwide output will decrease by an additional 0.3 percentage points in 2023 if banks continued to restrict credit.
US is expected to increase by 1.6% in 2023
According to the IMF, growth will peak at 2.8% in 2023 before speeding up to 3% in 2024. For the remainder of the year, inflation is projected to remain high at 7% before dropping to 4.9% the next year. Compared to its growth rate of 3% in 2022, China’s growth rate is predicted to be 5.2% in 2023 and 4.5% in 2024. The US is expected to increase by 1.6% in 2023, France by 0.7%, while the UK and Germany are expected to rise by a pitiful 0.1% and 0.7%, respectively. Despite the COVID pandemic’s persistence and tightened financing circumstances brought on by the ongoing Russia-Ukraine war, most nations will avoid recession in 2023.
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