India-China alone will account for half of global growth in 2023 IG News

  • Growth outlook for Asia’s third largest economy maintained
  • The Multinational Credit Agency pegged global growth at 2.9 percent for 2023
  • IMF forecast: India’s growth rate will be higher than China-US

India and China alone will drive half of the growth the global economy will register in 2023, the IMF said. Along with this, the IMF maintained its growth forecast for Asia’s third largest economy for the fiscal year 2024. India remains a bright spot, the IMF said in its latest update of the Biennial World Economic Outlook. In FY 2023, India’s growth rate will decline to 6.1 percent from the estimated 6.8 percent. The global lender said domestic demand will remain resilient despite global headwinds. The Washington-based multinational credit agency raised its global growth forecast for 2023 by 20 basis points to 2.9 percent. The IMF said the balance of risks was tilted to the downside but that downside risks have eased since its October 2022 report.

Union Finance Minister Nirmala Sitharaman will present the Union Budget in Parliament tomorrow. However, before this budget, IMF has given good news. According to the IMF, India’s growth rate will be higher than China and America in both the years 2023 and 2024. IMF Deputy Managing Director Geeta Gopinath tweeted that the global economy may see a slowdown this year compared to last year. The good news for India is that the country’s growth rate is expected to be higher than that of China and America in the current year.

Inflation rate to fall in India: IMF

The IMF said on Tuesday that India’s inflation rate may come down to five per cent from 6.8 per cent in the fiscal year ending March 31. While in 2024, this inflation may further decrease to four percent. Daniel Lee, division chief in the IMF’s research department, told reporters that like other countries, India’s inflation rate is expected to decline from 6.8 percent in 2022 to 5 percent in 2023, and further decline to 4 percent in 2024. According to the World Economic Outlook Update issued by the IMF on Tuesday, 84 percent of countries around the world are expected to experience lower inflation rates in 2023 than in 2022.