The International Monetary Fund raised India’s GDP growth forecast for the current fiscal year to 6.8%, as against 6.5% earlier, on the back of strong domestic demand and a rising working age population. The projection will help India remain the fastest growing major economy.
In recent weeks, several agencies have increased the growth projection for India, including the Asian Development Bank and global ratings agencies S&P and Moody’s.
While the global economy is expected to grow at 3.2% this year, the same as the previous estimate, the Chinese economy is projected to expand 4.6% and Asean-5 at 4.5%, the latest World Economic Outlook said.
“Despite gloomy predictions, the global economy remains remarkably resilient, with steady growth and inflation slowing almost as quickly as it rose. The journey has been eventful, starting with supply-chain disruptions in the aftermath of the pandemic, an energy and food crisis triggered by Russia’s war on Ukraine, a considerable surge in inflation, followed by a globally synchronised monetary policy tightening,” IMF chief economist Pierre-Olivier Gourinchas said, while suggesting that policymakers focus on increasing resilience by strengthening govt finances and revitalising growth prospects.
