World Economic Outlook
- The World Economic Outlook (WEO) is an International Monetary Fund’s report that provides analysis and forecasts of economic developments and policies in its member countries.
- The report encapsulates the state of the global economy and highlights risks and uncertainty that threaten growth.
- It is usually published twice a year.
Why in News?
- The IMF, in its latest World Economic Outlook, has cut its forecast for India’s GDP growth in the current fiscal year to 8.2%, a 0.8 percentage point reduction from its previous projection, as it downgraded the outlook for global growth citing the economic impact of the Russia-Ukraine war.
- It also projected India’s economy to expand by 6.9% next year, putting it on course to be the fastest growing large economy over the next two years.
- World output is now projected to grow by 3.6% this calendar year and next, slowing sharply from the 6.1% expansion seen in 2021.
- The global impacts of Russia’s invasion of Ukraine are expected to work through several channels. First, the commodity price increases. Second, direct impacts to the extent that countries have trade links with Russia or Ukraine. Third, via disruptions to cross-border production networks (e.g. neon gas production, an input for silicon chips is concentrated in Russia and Ukraine as per the IMF). Fourth, sanctions.
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