Growth slowdown concentrated in advanced economies: IMF

New Delhi [India], July 26 (ANI): While the International Monetary Fund (IMF) has upgraded India’s growth forecast for the current financial year it has said that the slowdown in growth this year will be concentrated to advanced economies

In its ‘World Economic Outlook’ projections released on Tuesday, it projected global growth to slow from last year’s 3.5 per cent to 3 per cent this year and the next — a 0.2 percentage points upgrade for 2023 from IMF’s April projections.
In advanced economies, including the US, countries in the European Union and the UK, the IMF said the growth will fall from 2.7 per cent in 2022 to 1.5 per cent this year and is estimated to be subdued at 1.4 per cent next year.

“The euro area, still reeling from last year’s sharp spike in gas prices caused by the war, is set to decelerate sharply,” IMF said in its Outlook report.

In contrast, growth in emerging markets and developing economies is still expected to pick-up with a year-on-year growth expected to accelerate from 3.1 per cent in 2022 to 4.1 per cent this year and the next.

With respect to India, IMF has predicted that the economy will grow at 6.1 per cent in 2023, a 0.2 percentage point upward revision compared with the April projection.

India is estimated to account for one-sixth of global growth this year.

“India is a country with growth — very strong and continuing to be strong. It’s about — one sixth of total global growth is accounted for by India right this year, and inflation is back inside the target range in our estimates,” said Daniel Leigh, Division Chief, Research Department, IMF, at a press conference.