The International Monetary Fund (IMF) said it is expecting some slowdown in the Indian economy next fiscal year and projected growth to slow down to 6.1 percent from 6.8 percent during the current fiscal ending March 31. In the January update of its World Economic Outlook, the IMF said that the global growth is projected to fall from an estimated 3.4 percent in 2022 to 2.9 percent in 2023, then rise to 3.1 percent in 2024.
“Growth in India is set to decline from 6.8 percent in 2022 to 6.1 percent in 2023 before picking up to 6.8 percent in 2024, with resilient domestic demand despite external headwinds,” said the IMF’s World Economic Outlook update. 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.
According to IMF chief economist Pierre-Olivier Gourinchas, the risk of recession has subsided and central banks have been making progress in controlling inflation. However, the war in Ukraine and China’s Covid-19 struggles could hamper growth and more work was needed to curb prices.
