India’s growth is anticipated to be 6.1% in 2023, according to IMF

The International Monetary Fund (IMF) said it anticipated some slowing in the Indian economy next fiscal year and projected the growth to 6.1% from 6.8% during the current fiscal year ending March 31. The IMF released the January update of its World Economic Outlook on Tuesday.

The most recent World Economic Outlook predicts that global growth will decrease from an estimated 3.4% in 2022 to a projected 2.9% in 2023 before increasing to a projected 3.1% in 2024.

The IMF predicted that global growth would pick up a bit in 2024, reaching 3.1%, but this is 0.1 percentage points lower than what it had predicted in October as demand is slowed by the full effects of steeper central bank interest rate increases.

The risks of a recession have decreased, according to IMF chief economist Pierre-Olivier Gourinchas, and central banks are doing a better job of controlling inflation. However, more work is still needed to do so, and new disruptions could result from the Ukraine War’s continued escalation and China’s conflict with Covid-19.

‘We have to sort of be prepared to expect the unexpected, but it could well represent a turning point, with growth bottoming out and then inflation declining,’ Gourinchas was reported as saying by Reuters.

‘Our growth projections actually for India are unchanged from our October Outlook. We have 6.8 per cent growth for this current fiscal year, which runs until March, and then we’re expecting some slowdown to 6.1 percent in fiscal year 2023. And that is largely driven by external factors,’ IMF Chief Economist and Director of Research Pierre-Olivier Gourinchas told reporters.

‘Growth in India is set to decline from 6.8 per cent in 2022 to 6.1 percent in 2023 before picking up to 6.8 per cent in 2024, with resilient domestic demand despite external headwinds,’ said the IMF’s World Economic Outlook update.

The report predicts that growth in emerging and developing Asia will increase to 5.3% and 5.2%, respectively, in 2023 and 2024 after a more severe than anticipated slowdown to 4.3% attributed to China’s economy in 2022.