Lagatar24 Desk
New Delhi, Jan 31: The International Monetary Fund (IMF) has released the January update of its World Economic Outlook on Tuesday.
As per the update, IMF said India’s growth was expected to decline from 6.8 per cent in 2022 to 6.1 per cent in 2023 before picking up to 6.8 per cent in 2024, with resilient domestic demand despite external headwinds.
IMF (International Monetary Fund) projects India's growth projection to be 6.1% for 2023 pic.twitter.com/qpMahATE5u
— ANI (@ANI) January 31, 2023
According to the latest World Economic Outlook, global growth, estimated at 3.4 per cent in 2022 is expected to fall to 2.9 per cent in 2023 and then rise to 3.1 per cent in 2024.
The IMF said Global growth will accelerate slightly to 3.1 per cent in 2024, but this is a tenth of a percentage point below the October forecast as the full impact of steeper central bank interest rate hikes slows demand.
The negative growth in global GDP or global GDP per capita, which often occurs during a global recession, is unlikely. Nevertheless, global growth projected for 2023 and 2024 are below the historical annual average of 3.8 per cent, said IMF.
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The forecast of low growth in 2023 reflects the central bank rate hikes to combat inflation, especially in advanced economies, and the war in Ukraine. The decline in growth in 2023 from 2022 is driven by advanced economies. In emerging markets and developing economies, growth is expected to have bottomed out in 2022.
As per the update, the growth is expected to pick up in China with the full reopening in 2023. The expected pickup in 2024 in both groups of economies reflects a gradual recovery from the effects of the war in Ukraine and slowing inflation. Following the path of global demand, world trade growth is expected to slow down to 2.4 per cent in 2023, despite an easing of supply bottlenecks, before rising to 3.4 per cent in 2024.
The IMF said growth in emerging and developing Asia is expected to rise in 2023 and 2024 to 5.3 per cent and 5.2 per cent, respectively.
