@IMFNews

International Monetary Fund (IMF) has raised India’s growth forecast, projecting a Gross Domestic Product (GDP) growth of 6.1 per cent in the current fiscal.

In the World Economic Outlook that was released in April, the IMF had projected India’s GDP at 5.9 per cent in the current fiscal.

The IMF in its latest World Economic Outlook report, which was released today said, the upward revision of 0.2 percentage points is reflective of the momentum from stronger-than-expected growth in the fourth quarter of 2022 as a result of stronger domestic investment.

The IMF has kept the GDP growth projection for the fiscal year 2024-2025 unchanged at 6.3 per cent.

India also retains the tag of the fastest-growing economy with neighbouring China estimated to grow at 5.2 percent in 2023 and 4.5 percent in 2024.

The IMF in the latest World Economic Outlook report has also revised upwards the projection for global growth output to 3 per cent in 2023 from its previous forecast of 2.8 per cent. Advanced economies continue to drive the decline in growth from 2022 to 2023, with weaker manufacturing, as well as idiosyncratic factors, offsetting stronger services activity.

Global headline inflation is expected to fall to 6.8 per cent in 2023 and further to 5.2 per cent in 2024 from 8.7 per cent in 2022.