IMF slashes India’s GDP projection to 8.2% for FY23
BRAND-NEW DELHI: The International Monetary Fund (IMF) on Tuesday slashed India’s gdp (GDP) projection by 80 percentage indicate 8.2 percent for fiscal 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 prices will weigh on consumption.
“Notable downgrades to the 2022 projection include Japan(0.9 percentage point) and India (0.8 percentage point), showing in part weaker domestic demand– as higher oil costs are anticipated to weigh on private consumption and investment– and a drag from lower net exports,” the report said.
For financial year 2023-24, the multilateral company cut India’s GDP forecast by 20 basis points to 6.9 per cent.
IMF’s forecast is by far the highest to name a few.
In its financial policy committee (MPC) satisfy previously this month, the Reserve Bank of India (RBI) pegged GDP development at 7.2 percent for FY23. For the next monetary year, the reserve bank had predicted a growth of 6.3 percent.
Recently, the World Bank had cuts India’s GDP forecast to 8 per cent from 8.7 percent for FY23, citing effects of the Russia-Ukraine war.
In terms of global development situation, IMF dramatically downgrade its 2022 projection to 3.6 percent due to the “seismic” impact of the war in Ukraine that is spreading out worldwide.
“The financial results of the war are spreading out far and wide– like seismic waves that originate from the center of an earthquake,” IMF chief economic expert Pierre-Olivier Gourinchas stated in the report.
The United States and China will also feel the effects of the war and the ongoing impact of the Covid-19 pandemic, with United States growth anticipated to slow to 3.7 per cent, and China’s to 4.4 per cent.
Released at Tue, 19 Apr 2022 13:42:55 +0000