The International Monetary Fund is downgrading its forecast for the world economy this year, citing the spread of COVID-19's omicron variant, higher energy prices, an uptick in inflation and financial strains in China. The 190-country lending agency now forecasts the global economy will expand 4.4% in 2022. That's down from an estimated 5.9% last year and from the 4.9% the IMF was forecasting for 2022 back in October.
In its latest update of World Economic Outlook on Tuesday, the Washington-based international financial institution, which had in October last year projected a 9.5 per cent GDP growth for India, put the forecast for the next fiscal FY23 (April 2022 to March 2023) at 7.1 per cent.
The Indian economy had contracted by 7.3 per cent in the 2020-21 fiscal year.
The IMF's forecast for the current financial year is less than 9.2 per cent that the government's Central Statistics Office has predicted and 9.5 per cent that the Reserve Bank of India has estimated. Its forecast is lower than the 9.5 per cent projection by S&P and 9.3 per cent by Moody's but more than the 8.3 per cent projection by the World Bank and 8.4 per cent by Fitch.
The Chinese economy is forecast to grow 4.8% this year - down from 8.1% last year and 0.8 percentage points slower than the IMF expected in October. China's zero-tolerance approach to COVID is likely to take an economic toll as is financial stress on the country's property developers, according to the agency.
#Economy #GlobalEconomy #IMF #IMFForecast #IndianEconomy#USEconomy #China #EU
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