What’s in the news?
- The International Monetary Fund (IMF) has raised India’s growth forecast, projecting a Gross Domestic Product (GDP) growth of 6.1 per cent in the current fiscal.
- In the World Economic Outlook that was released in April, the IMF had projected India’s GDP at 5.9 per cent in the current fiscal.
- The IMF, in its latest World Economic Outlook report, the upward revision of 0.2 percentage points is reflective of the momentum from stronger-than-expected growth in the fourth quarter of 2022 as a result of stronger domestic investment.
- The IMF has kept the GDP growth projection for the fiscal year 2024-2025 unchanged at 6.3 per cent.
- India also retains the tag of the fastest-growing economy with neighbouring China estimated to grow at 5.2 percent in 2023 and 4.5 percent in 2024.
- The IMF in the latest World Economic Outlook report has also revised upwards the projection for global growth output to 3 per cent in 2023 from its previous forecast of 2.8 per cent.
- Advanced economies continue to drive the decline in growth from 2022 to 2023, with weaker manufacturing, as well as idiosyncratic factors, offsetting stronger services activity.
- Global headline inflation is expected to fall to 6.8 per cent in 2023 and further to 5.2 per cent in 2024 from 8.7 per cent in 2022.