Muristek
Washington, January 25
The International Monetary Fund (IMF) has cut India's economic growth forecast to 9% for the current fiscal year ending March 31, joining a host of agencies which have downgraded their projections on concerns over the impact of a spread of new variant of coronavirus on business activity and mobility.
In its latest update of World Economic Outlook on Tuesday, the Washington-based international financial institution, which had in October last year projected a 9.5% GDP growth for India, put the forecast for the next fiscal FY23 (April 2022 to March 2023) at 7.1%. The Indian economy had contracted by 7.3% in the 2020-21 fiscal.
The IMF's forecast for the current fiscal is less than 9.2% that the government's Central Statistics Office has predicted and 9.5% that the RBI has estimated. Its forecast is lower than the 9.5% projection by Samp;P and 9.3% by Moody's but more than the 8.3% projection by the World Bank and 8.4% by Fitch.
According to the IMF, India's prospects for 2023 are marked up on expected improvements to credit growth and, subsequently, investment and consumption, building on better-than-anticipated performance of the financial sector.
The IMF said global growth is expected to moderate from 5.9% in 2021 to 4.4% in 2022, half a percentage point lower for 2022 than in the October WEO, largely reflecting forecast markdowns in the two largest economies — the US and China.
A revised assumption removing the Build Back Better fiscal policy package from the baseline, earlier withdrawal of monetary accommodation, and continued supply shortages produced a downward 1.2 percentage-point revision for the US, it said. — PTI
World Economic Outlook
In its latest update of World Economic Outlook on Tuesday, the IMF has put the forecast for the next fiscal FY23 (April 2022 to March 2023) at 7.1% The forecast for the current fiscal is less than 9.2% Central Statistics Office has predicted and 9.5% estimated by RBI It is lower than the 9.5% projection by Samp;P and 9.3% by Moody's but more than the 8.3% projection by the World Bank and 8.4% by Fitch Ratings