New Delhi: The International Monetary Fund (IMF) has said it is expecting some slowdown in the Indian economy next financial year and estimated the growth to 6.1 percent from 6.8 percent during the current fiscal ending March 31.
The IMF growth projections are 6.8 percent growth for this current fiscal year, which runs until March, and then it is expecting some slowdown to 6.1 percent in fiscal year 2023. And that is largely driven by external factors.
Global growth will also fall
The IMF on Tuesday released the January update of its World Economic Outlook, according to which the global growth is estimated to decline from an anticipated 3.4 percent in 2022 to 2.9 percent in 2023, then rise to 3.1 percent in 2024.
Growth in emerging Asia is expected to rise
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.
China’s GDP slowdown to be below global average
China's real GDP slowdown in the fourth quarter of 2022 implies a 0.2 percentage point downgrade for 2022 growth to 3.0 percent -- the first time in more than 40 years with China's growth below the global average.
Growth in China is projected to rise to 5.2 percent in 2023, reflecting rapidly improving mobility, and to fall to 4.5 percent in 2024 before settling at below 4 percent over the medium term amid declining business dynamism and slow progress on structural reforms.
Pierre-Olivier Gourinchas, Chief Economist and Director, Research Department of the IMF, said that India remains a bright spot. Together with China, it will account for half of global growth this year, versus just a 10th for the US and euro area combined, he added.
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