IMF World Economic Outlook- Update

July 27, 2022

India’s economic growth forecast has been reduced from 8.2% to 7.4%. The International Monetary Fund (IMF) released India’s growth prediction in its World Economic Outlook on July 26, 2022.

Key Findings of the IMF’s Outlook:

India’s economic growth forecast was estimated to be 8.2% in April.
IMF reduced the estimate to 7.4% due to vulnerability of Indian economy considering the external shocks and rapid monetary policy tightening.
IMF recommends the policymakers to prioritize suggested policymakers prioritize heal the inflation through monetary policy tightening.
India’s growth forecast for fiscal year 2023-24 has also been reduced by 0.8 percent point, to 6.1% due to increasing economic risks.

India’s growth forecast by other institutions:

The Reserve Bank of India (RBI) has estimated India’s growth to 7.2% in 2022-23.
Asian Development Bank has decreased India’s growth forecast to 7.2% for 2022-23.

Global Growth Outlook:

Global Growth Outlook has also been reduced by the IMF. It has warned that, world is moving towards recession. Global economic expansion is expected to slow down to 3.2% in 2022. This expansion is slower as compared to 3.6% in April 2022.

India to remain Fastest Growing economy:

According to IMF, India will continue to be fastest growing major economies worldwide in 2022-23 and 2023-24. Only Saudi Arabia is likely to be ahead of India. Saudi Arabia is estimated to grow at 7.6% in 2022. Growth in China is likely to slow down to 3.3% in 2022. Russia, South Africa, and Brazil witnessed an upward revision economic forecast.

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