Latest Updates of IMF’s World Economic Outlook

The International Monetary Fund (IMF), in its World Economic Outlook, slashed its FY23 growth forecast for India from its July projection of 7.4 percent to 6.8 percent Indian Economy IMF has cut its FY23 growth forecast for India by 60 basis points from its July projection of 7.4 percent to 6.8 percent. This is the steepest cut made by the multilateral body for any major economy other than the US. The IMF’s current move follows the World Bank’s slashing of its FY2023 growth projection for India from the earlier prediction of 7.5 percent to 6.5 percent. Several other agencies have also slashed India’s GDP forecast in the recent weeks, including the RBI. The recent prediction of the IMF reflects “a weaker-than-expected outturn” in the June quarter, a severe fall in external demand and tightening of interest rates by key central banks. However, India is expected to remain the fastest growing economy in the world. The IMF has retained its FY24 growth forecast at 6.1 percent. This mod...