IMF predicts Indian economy to grow at 6.1 pc in 2023

Published on: 26 Jul 2023 at 10:11 AM

Published by: thefactnews

The Fact News Service

Washington DC, July 26

The International Monetary Fund has predicted that India’s economy will grow at 6.1 per cent in 2023, a 0.2 percentage point upward revision compared with the April projection, reflecting momentum from stronger-than-expected growth in the fourth quarter of 2022 as a result of stronger domestic investment.

IMF said in latest update of the World Economic Outlook that growth in emerging and developing Asia is on track to rise to 5.3 per cent in 2023, then to 5.0 percent in 2024, showcasing a 0.1 percentage point downward revision for 2024. It said the forecast for China remains unchanged at 5.2 per cent for 2023 and 4.5 per cent for 2024. However, consumption growth has evolved broadly in line with April 2023 World Economic Outlook projections. However, investment has underperformed due to the ongoing real estate downturn in China.

“Growth in India is projected at 6.1 percent in 2023, a 0.2 percentage point upward revision compared with the April projection, reflecting momentum from stronger-than-expected growth in the fourth quarter of 2022 as a result of stronger domestic investment,” IMF’s World Economic Outlook Update said.

According to the prediction, growth in Japan is projected to witness an increase from 1.1 per cent in 2022 to 1.4 per cent in 2023, showcasing a modest upward revision then slow to 1.0 per cent in 2024 as the effects of past stimuli dissipate.