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
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
-
Joining The Dots | Dark Skies, Steady Diya: Why Hope Holds This Diwali
With war, a weak rupee and foreign outflows weighing on sentiment, policymakers at the NDTV World Summit and market veterans at NDTV Profit Ignite: Diwali Edition offered the same advice: stay invested and filter out the noise.
-
The Curious Case of Equitas Small Finance Bank And A CEO Who Quit For Stock
PN Vasudevan believes persistent investor concerns over a perceived conflict of interest had become a governance overhang on Equitas Small Finance Bank's stock, even as the lender improved profitability and asset quality.
-
Talking Points This Week: AI Cash Burn, A Tiger Comeback And An India That Still Finds Its Own Path
India is not immune to higher oil or tighter global liquidity, yet its earnings base is broader, its domestic policy levers are still available.
-
Foreign Investors Own Half Of HDFC Bank and ICICI Bank. An LTCG Cut Could Matter Most Here
Foreign portfolio investors have US$115 billion parked in HDFC Bank, ICICI Bank. If the government cuts long-term capital gains tax, Jefferies says returning foreign money could land here first.
-
'Never Seen This Level Of Negativity': Sandeep Tandon Says The Next Rally May Be Closer Than You Think
Veteran investor Sandeep Tandon says foreign selling is easing, large-caps are due a comeback and mid-caps are crowded, while he turns positive on gold, power and pharma this Diwali.
-
Indians Stay With Family, Not In Hotels | The Reason Why
India still lacks enough clean, reliable and affordable hotels for budget-conscious travellers.
-
The Economic Imperative: Analysing The Material Driving Force Behind India-Canada Strategic Reset
This economic complementarity is further reinforced by deep institutional investment ties and talent mobility, which form the bedrock of the bilateral framework.
