The International Monetary Fund (IMF) in its latest World Economic Outlook report released on 25 July 2023, has raised India’s growth forecast for the current fiscal year, projecting a Gross Domestic Product (GDP) growth of 6.1 percent. This is a revision from the previous projection of 5.9 percent in the World Economic Outlook released in April.
- The upward revision of 0.2 percentage points is attributed to the momentum from stronger-than-expected growth in the fourth quarter of 2022, driven by increased domestic investment.
- The IMF has maintained the GDP growth projection for the fiscal year 2024-2025 at 6.3 percent.
- India continues to hold the title of the fastest-growing economy, with neighboring China estimated to grow at 5.2 percent in 2023 and 4.5 percent in 2024.
- The IMF has also revised the projection for global growth output to 3 percent in 2023, up from its previous forecast of 2.8 percent. However, the decline in growth from 2022 to 2023 is driven by weaker manufacturing and idiosyncratic factors, despite stronger services activity.
- Global headline inflation is expected to decrease to 6.8 percent in 2023 and further to 5.2 percent in 2024, compared to 8.7 percent in 2022.
Q.: According to the latest report by the International Monetary Fund (IMF), what is the projected Gross Domestic Product (GDP) growth rate for India in the current fiscal year (2023-2024) ?
a) 5.9 percent
b) 6.1 percent
c) 6.3 percent
d) 6.5 percent
Ans : b) 6.1 percent