IMF Lowers India Growth Forecast For FY23 To 7.4%

The International Monetary Fund (IMF) on Tuesday cut the global growth outlook and warned that the world may soon be on the brink of a recession. Global economic expansion will likely slow to 3.2% this year, slower than the 3.6% forecast by the fund in April, the IMF said. The outlook for India has been revised down by 0.8 percentage point, to 7.4 percent. For India, the revision reflects mainly less favourable external conditions and more rapid policy tightening, IMF stated. For emerging market and developing economies, the negative revisions to growth in 2022-23 reflect mainly the sharp slowdown of China's economy and the moderation in India's economic growth.

The multilateral agency also cut India's growth forecast for the next fiscal by 0.8 percentage points to 6.1% amid growing economic risks. The tentative global recovery in 2021 has been followed by increasingly gloomy developments" in 2022 because of tighter financial conditions, a worse-than-anticipated slowdown in China, and negative spillovers from the war in Ukraine, the IMF said in its World Economic Outlook Update.

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