IMF Slashes India's Growth Forecast To 8.2% In 2022-23 Over Russia-Ukraine War Concerns
The International Monetary Fund (IMF) has slashed the growth forecast for India for the current financial year by 80 basis points to 8.2 per cent, cautioning that the ongoing Russia-Ukraine war will in the long run hurt consumption and also growth as inflation will rise.
The funding body has made the growth forecast in its "World Economic Report", which was released today.Â
Commenting on India's growth forecast in the report, the IMF said that higher oil prices are expected to weigh on private consumption and investment.
It also expected India's 2022-23 current account deficit to be at 3.1 per cent, compared with 1.5 per cent expected for 2021-22. There was also a cut in India's 2023-24 GDP growth forecast, to 6.9 per cent from 7.1 per cent estimated in global body's January report.
Russia's invasion of Ukraine has significantly hit recoveries in many countries. We have downgraded global growth for 2022 from 4.4% to 3.6%, and for 2023 from 3.8% to 3.6%. Read more in our latest WEO report https://t.co/WMdekgs2Yk pic.twitter.com/ZG9Fusjzg2
April 19, 2022The Reserve Bank of India (RBI has said that India will grow at the rate of 7.2 percent in 2022-23, while the second advance estimate of the Ministry of Statistics and Programme Implementation had said that GDP growth would be 8.9 percent in 2021-22.
Apart from India, other significant downsizing forecasts of economic growth have been for Japan (0.9 percentage points) and Russia, where IMF has suggested that the country will contract 8.5 per cent in 2022 and also in 2023 by 2.3 per cent.
Commenting on Ukraine, IMF said that it is difficult to arrive at the exact extent of the damage that the war with Russia has caused to it.
At the same time, it has said that Ukraine's economy faces a "severe contraction" and is expected to shrink by 35 per cent in 2022.Â
"Global economic prospects have been severely set back, largely because of Russia's invasion of Ukraine," IMF Chief Economist Pierre-Olivier Gourinchas said.Â
-
India's Troika Of Good Luck | Joining The Dots
A weaker Trump, a cooling AI trade and resilient earnings have put Indian markets back in favour. Rising inflation could spoil the party.
-
Talking Points This Week: Leadership Shock At Nvidia, Earnings Strength, And The Fog Over Hormuz
The Anthropic IPO pricing and first trading day, Nvidia's upcoming earnings, and any fresh signals from Iran will set the tone for the following week.
-
Signature Play: The Classic Cocktail Is Dead. Or Is It?
Classic cocktails are disappearing from India's cocktail menus. But they're still being ordered, taught to bartenders and borrowed from. So, who's really having the last drink?
-
A New Samvat Wishlist: Inclusive Prosperity And Human Development
India has strengthened its economic foundations through infrastructure, digital access and enterprise. Its next growth chapter must deepen productivity, create better livelihoods and widen participation in prosperity.
-
Love, Sex Aur Dhokha: The Audacious Plot To Spy On Jensen Huang
A Taipei dinner, a Singapore chip buyer and a suspected Chinese asset: inside the alleged spy operation that got close to NVIDIA's Jensen Huang.
-
Ten Things I Learnt This Samvat
Patience can be a trap. Cheap stocks can stay cheap. Leverage can wipe you out. What did Samvat 2082 teach us? Niraj Shah writes on 10 lessons from the year gone by.
-
Talking Points This Week: Tech Nerves, FII Buying, And A Faraway Banking Shock
The global markets are not shining this Diwali. The exception in the large markets is, India.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
