IMF Claims Growth by 9.5% In Indian Economy

Latest Updated on 17 February 2023
The International Monetary Fund has maintained its 9.5% growth prognosis for India for 2021–2022, but it has marginally cut its 6% previous projection for global growth to 5.9% due to supply disruptions in rich economies and worsening pandemic dynamics in low-income developing nations.

The multinational body predicted that India's GDP will expand by 8.5% in FY23 in its most recent World Economic Outlook report, which was published on Tuesday.

It stated that ensuring adequate vaccination rates across the board and preventing more virulent virus mutations should be the top priority for policy.

The country's expected growth in 2021 and 2022 has been reduced by 0.1%, to 8.0 and 5.6%, respectively.

In July, IMF reduced India's GDP outlook for FY22 from an earlier expectation of 12.5% to 9.5%, noting the severe second Covid-19 wave that happened between March and May.

The Reserve Bank of India, a private organization, projected the current fiscal's GDP growth to be 9.5%, which is in line with the IMF's growth prediction.

IMF estimates: 2022 USA: 5.2%, Germany: 4.6%, France: 3.9%, Italy: 4.2%, Spain: 6.4%, United Kingdom: 3.2% https://t.co/nX9iUeIEju

— IMF (1634046986000, @IMFNews)

Indian GDP is expected to rise by 9.5% in FY22, according to both Moody's and S&P, a Global Rating Agency.

The World Bank maintained this week that it expected India's growth rate for FY22 to be 8.3%, the same as its June prediction, but said that India's economic prospects for this year and beyond will be decided by the country's Growth Rate of Vaccinations.

Last Updated on 13 October 2021

According to the latest predictions provided by the International Monetary Fund on Tuesday, India's economy will rise by 9.5 percent in 2021 and 8.5 percent in 2022, after contracting by 7.3 percent owing to the COVID-19 epidemic.

The newest World Economic Outlook growth prediction for India is unchanged from the last WEO (World Economic Outlook) update from July this summer, however, it is down three percentage points in 2021 and 1.6 percentage points from April projections. According to the most recent World Economic Outlook report, global growth will be 5.9% in 2021 and 4.9 percent in 2022.

The IMF's Chief Economist, Gita Gopinath, noted that, compared to their July forecast, the global growth projection for 2021 has been cut down to 5.9%, while the forecast for 2022 has remained unchanged at 4.9 percent. She predicted that aggregate output in advanced economies will revert to its pre-pandemic trend line in 2022, and then exceed it by 0.9 percent in 2024. Another critical worldwide concern, according to Gopinath, is the need to slow the rise in global temperatures and contain the escalating negative effects of climate change.