IMF cuts India’s FY24 GDP forecast to 5.9%

IMF cuts India’s FY24 GDP forecast to 5.9%: The International Monetary Fund (IMF) has lowered India’s GDP growth forecast for fiscal year 2023-24 by 20 basis points to 5.9 percent. This latest forecast is slightly below the Reserve Bank of India’s projection of 6.4 percent. Despite the downward revision, India is still projected to be the fastest-growing major economy in the world.

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IMF’s World Economic Outlook report:

The International Monetary Fund (IMF) has recently released its World Economic Outlook report, in which it has revised its forecast for India’s retail inflation and growth rate for the fiscal year 2024-25. The IMF now expects retail inflation in India to be 4.9% in fiscal year 2023-24 and 4.4% in fiscal year 2024-25.

The IMF has also revised its growth forecast for India for the fiscal year 2024-25, lowering it to 6.3% from the earlier projection of 6.8% that was made in January this year. The downward revision in the growth forecast is attributed to the recent surge in COVID-19 cases in India, which has led to localized lockdowns and restrictions, affecting economic activity.

India: fastest-growing major economy in the world:

The latest World Economic Outlook figures released by the International Monetary Fund (IMF) reveal that India remains the fastest-growing economy in the world, despite a significant drop in growth rate projections from 6.8% in 2022 to 5.9% in 2023. In comparison, China’s growth rate is projected to be 5.2% in 2023 and 4.5% in 2024, up from 3% in 2022.

While India’s growth rate projection for the next fiscal year has been lowered, it is still higher than most other major economies in the world. The COVID-19 pandemic has impacted global economic growth, and the IMF has lowered its global growth forecasts, predicting 2.8% growth this year and 3% growth in 2024, both down 10 basis points from its January forecasts.