The International Monetary Fund forecast India’s economy to grow 6.1 percent in 2023, an upward revision of 0.2 percentage point from its April projection, reflecting stronger than expected growth momentum in the fourth quarter of 2022 on the back of stronger growth domestic investment.
The IMF said in its latest World Economic Outlook update that growth in emerging and developing Asia is on track to increase to 5.3 percent in 2023 and then to 5.0 percent in 2024, a downward revision of 0.1 percentage point for 2024.
It said the forecast for China remained unchanged at 5.2 percent for 2023 and 4.5 percent for 2024. However, consumption growth was roughly in line with projections in the April 2023 World Economic Outlook. However, investment underperformed due to the continued decline in property in China.
IMF World Economic Outlook Update reported
•Growth in India is estimated at 6.1 percent in 2023, an upward revision of 0.2 percentage point from the April projection.
• Reflecting stronger expected growth momentum in the fourth quarter of 2022 on stronger domestic investment.
•Growth in Japan is expected to witness an increase from 1.1 percent in 2022 to 1.4 percent in 2023, indicating a slight upward revision, before slowing to 1.0 percent in 2024 as the effects of past stimulus wear off.
The IMF said global growth is expected to decline from an estimated 3.5 percent in 2022 to 3.0 percent in both 2023 and 2024. It also said global headline inflation is expected to fall from 8.7 percent in 2022 to 6.8 percent in 2023. and 5.2 percent in 2024.
The 2023 forecast is slightly higher than predicted in the April 2023 World Economic Outlook (WEO), it remains weak by historical standards. The increase in the central bank’s base rates in the fight against inflation continues to weigh on economic activity.
