Indian Economy
India steadfast despite formidable challenges says IMF report; Predicts India will grow by nearly 6% in FY24
Washington/New Delhi: India is expected to be the world's fastest-growing economy, despite facing significant challenges like financial sector turbulence, inflationary pressures, the impact of the Russia-Ukraine conflict, and the continued effects of the Covid-19 pandemic in the last three years, according to the International Monetary Fund's World Economic Outlook report.
In its flagship World Economic Outlook report published on April 11, the International Monetary Fund (IMF) predicted that India would experience the fastest economic growth in the world, with a projected growth rate of 5.9% in the current fiscal year.
However, the IMF cautioned that any disruptions in the financial system could have a negative impact on the overall global economy.
The International Monetary Fund (IMF) adjusted its estimate for global economic growth in 2023, considering the cooling economic activity that resulted from higher interest rates.
The organisation warned that a significant increase in financial turmoil could drive output to levels close to recession.
The latest World Economic Outlook report projected global economic growth of 2.8% for 2023, a decrease of 0.1% from the previous update in January and a decrease of 0.6% from the growth rate in 2022.
The report also predicted a global real GDP growth rate of 2.8% in 2023 and 3% in 2024, marking a significant slowdown from the 3.4% growth rate seen in 2022.
India has been facing formidable challenges, yet it remains steadfast and emerges as a beacon of resilience in the global economy, according to the IMF's bi-annual World Economic Outlook report.
Although the report lowered India's growth projection to 5.9 percent from the previous year's projection of 6.1 percent, India has managed to weather the storm and remained relatively unscathed, it stated.
The report also indicates that India's headline retail inflation is expected to decline from 6.7 percent in the previous year to 4.9 percent in 2023-24, which is a clear sign of India's economic prowess and unwavering determination to overcome even the toughest of obstacles.
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