Editor's Pick: IMF cuts India’s growth forecast

The International Monetary Fund has cut its global growth forecast for 2023 amid colliding pressures from the war in Ukraine, high energy and food prices, inflation and sharply higher interest rates, warning that conditions could worsen significantly next year. The growth rate for this year for India has been revised downward by 0.6 percentage points relative to the IMF's June 2022 forecast, following a weaker output in the second quarter, and subdued external demand, as per IMF. India is now projected to grow at 6.8% in the current fiscal year, following 8.7% growth in the fiscal year that ended March 31. The forecast for the next fiscal year remains unaltered at 6.1%. The IMF's cut in growth forecast comes after the RBI and World Bank revised their forecast for FY23. "India has been doing fairly well in 2022 and is expected to continue growing fairly robustly in 2023," the IMF's chief economist, Pierre-Olivier Gourinchas said. He said inflation in India was above the RBI's target and that the fiscal and monetary policy should "probably be on the tightening side". The IMF has projected 6.9% consumer price inflation this year and 5.1% next year. The IMF expects inflation in India to return to the inflation tolerance band in the fiscal year 2023-24, as per economist Daniel Leigh. For the world as a whole, growth will slow down from 6% in 2021 to 3.2% in 2022 and 2.7% in 2023. Here's The Hindu's In Focus podcast on the current global economic situation. Was this newsletter forwarded to you? Head over to our newsletter subscription page to sign up for Editor's Pick and more. Click here The Hindu's Editorials Ordinary men: On the Aam Aadmi Party's Hindu politics Nothing left to chance: On Max Verstappen's Formula One triumph The Hindu's Daily Quiz Which of the following States has set up a safe house for inter-faith and inter-religious couples? Madhya Pradesh Andhra Pradesh Punjab Maharashtra To know the answer and to take the quiz, click here

Editor's Pick 12 OCTOBER 2022

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IMF cuts India's growth forecast The International Monetary Fund has cut its global growth forecast for 2023 amid colliding pressures from the war in Ukraine, high energy and food prices, inflation and sharply higher interest rates, warning that conditions could worsen significantly next year. The growth rate for this year for India has been revised downward by 0.6 percentage points relative to the IMF's June 2022 forecast, following a weaker output in the second quarter, and subdued external demand, as per IMF. India is now projected to grow at 6.8% in the current fiscal year, following 8.7% growth in the fiscal year that ended March 31. The forecast for the next fiscal year remains unaltered at 6.1%. The IMF's cut in growth forecast comes after the RBI and World Bank revised their forecast for FY23.  "India has been doing fairly well in 2022 and is expected to continue growing fairly robustly in 2023," the IMF's chief economist, Pierre-Olivier Gourinchas said. He said inflation in India was above the RBI's target and that the fiscal and monetary policy should "probably be on the tightening side". The IMF has projected 6.9% consumer price inflation this year and 5.1% next year. The IMF expects inflation in India to return to the inflation tolerance band in the fiscal year 2023-24, as per economist Daniel Leigh. For the world as a whole, growth will slow down from 6% in 2021 to 3.2% in 2022 and 2.7% in 2023. Here's  The Hindu's In Focus podcast on the current global economic situation. Was this newsletter forwarded to you? Head over to our newsletter subscription page to sign up for Editor's Pick and more. Click here The Hindu's Editorials Ordinary men: On the Aam Aadmi Party's Hindu politics Nothing left to chance: On Max Verstappen's Formula One triumph The Hindu's Daily Quiz Which of the following States has set up a safe house for inter-faith and inter-religious couples? Madhya Pradesh Andhra Pradesh Punjab Maharashtra To know the answer and to take the quiz, click here

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