“Growth in India is expected to fall from 6.8 percent in 2022 to 6.1 percent in 2023 before rebounding to 6.8 percent in 2024, supported by solid domestic demand despite external constraints,” according to the IMF’s World Economic Outlook report.
The International Monetary Fund (IMF) warned on Tuesday that it expects the Indian economy to decelerate next fiscal year, with growth falling to 6.1 percent from 6.8 percent in the current fiscal year, which ends March 31.
The IMF announced the January update to its World Economic Outlook on Tuesday, predicting that global growth will dip from an expected 3.4 percent in 2022 to 2.9 percent in 2023, then increase to 3.1 percent in 2024.
IMF Chief Economist and Research Department Director Pierre-Olivier Gourinchas said :
“Our growth forecasts for India remain unchanged from our October Outlook. We estimate 6.8 percent growth in the current fiscal year, which ends in March, and then 6.1 percent growth in fiscal year 2023. And it is mostly driven by foreign forces”.
“Growth in India is expected to fall from 6.8 percent in 2022 to 6.1 percent in 2023 before rebounding to 6.8 percent in 2024, supported by solid domestic demand despite external constraints,” according to the IMF’s World Economic Outlook report.
According to the report, growth in emerging and developing Asia is expected to rise in 2023 and 2024 to 5.3 percent and 5.2 percent, respectively, after the deeper-than-expected slowdown in 2022 to 4.3 percent attributable to China’s economy.
China’s real GDP slowdown in the fourth quarter of 2022 predicts a 0.2 percentage point reduction in 2022 growth to 3.0 percent — China’s growth falling below the world average for the first time in more than 40 years. China’s growth is expected to reach 5.2 percent in 2023, reflecting significantly rising mobility, before falling to 4.5 percent in 2024 and stabilising at less than 4 percent in the long term due to waning economic dynamism and weak progress on structural changes.
“Overall, I’d want to emphasise that emerging market economies and developing economies appear to be on the rise. “We anticipate a little improvement in regional growth from 3.9 percent in 2022 to 4 percent in 2023,” Gourinchas added.