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The International Monetary Fund (IMF) has released its forecast for the global economy growth in 2023. In this, the economic growth forecast for India has been reduced once again. The IMF has projected the country’s GDP growth to be 6.8% for the financial year 2023, cutting the current estimate by 0.60%.
However, without changing India’s GDP growth forecast for the financial year 2024, it has been kept at 6.1%. Earlier in July, the IMF had cut India’s GDP growth forecast by 0.80% for the financial years 2023 and 2014.
Russia-Ukraine war and Corona are also reasons for low growth
The IMF has also lowered its growth forecast for the global economy for 2023. The agency has attributed the low growth of the global economy to the Russia-Ukraine war, economic slowdown, the effect of the corona epidemic, rising interest rates.
According to the IMF, the growth rate of the global economy is expected to be 2.7% next year. Earlier in July, it was estimated to be 2.9%. At the same time, for this year, the growth rate of the global economy has been estimated at 3.2%. The global growth rate in the last financial year was 6%.
IMF’s estimate is lower than RBI’s estimate
The estimates released by the IMF regarding India’s economic growth are lower than the estimates of the Reserve Bank of India (RBI). In September this year, RBI had projected the country’s GDP growth. The country’s GDP growth was projected to be 7% for the financial year 2023, reducing by 0.20%.
There will also be a recession in America-China
The IMF has also slashed estimates for the world’s two largest economies, the US and China. According to the IMF, America’s economic growth will be 1.6% in the current financial year. This estimate is 0.7% lower than the July estimate. On the other hand, China’s economy is likely to grow at a rate of only 3.2% this year.