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IMF slashes India’s GDP forecast to 8.2% for FY23

IMF slashes India’s GDP forecast to 8.2% for FY23

BRAND-NEW DELHI: The International Monetary Fund (IMF) on Tuesday slashed India’s gross domestic product (GDP) forecast by 80 percentage indicate 8.2 per cent for financial year 2022-23.
In its World Economic Outlook report for the month of April 2022, the IMF stated expectation of weaker domestic demand owing to greater oil rates will weigh on usage.
“Notable downgrades to the 2022 forecast include Japan(0.9 percentage point) and India (0.8 percentage point), showing in part weaker domestic demand– as greater oil costs are anticipated to weigh on personal usage and financial investment– and a drag from lower net exports,” the report stated.
For fiscal year 2023-24, the multilateral company cut India’s GDP forecast by 20 basis points to 6.9 per cent.
IMF’s projection is without a doubt the highest among others.
In its monetary policy committee (MPC) satisfy earlier this month, the Reserve Bank of India (RBI) pegged GDP growth at 7.2 percent for FY23. For the next fiscal year, the main bank had predicted a growth of 6.3 percent.
Last week, the World Bank had cuts India’s GDP forecast to 8 per cent from 8.7 per cent for FY23, pointing out impacts of the Russia-Ukraine war.
In terms of global growth circumstance, IMF sharply downgrade its 2022 forecast to 3.6 per cent due to the “seismic” impact of the war in Ukraine that is spreading out worldwide.
“The financial impacts of the war are spreading everywhere– like seismic waves that emanate from the center of an earthquake,” IMF primary economist Pierre-Olivier Gourinchas said in the report.
The United States and China will also feel the effects of the war and the continuous impact of the Covid-19 pandemic, with US growth expected to slow to 3.7 per cent, and China’s to 4.4 per cent.

Published at Tue, 19 Apr 2022 13:42:55 +0000

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