The IMF sets India’s GDP growth in 2022 at 8.2%; USA with 3.7%, China with 4.4% and Russia with -8.5%
The IMF sets India’s GDP growth in 2022 at 8.2%;  USA with 3.7%, China with 4.4% and Russia with -8.5%

The IMF sets India’s GDP growth in 2022 at 8.2%; USA with 3.7%, China with 4.4% and Russia with -8.5%

Amid the faltering growth of the world’s largest economies due to the war between Russia and Ukraine, the International Monetary Fund (IMF) on Tuesday lowered its global economic forecast to 3.6% for 2022, against growth of 6.1% in 2021. IMF has projected 8.2 GDP growth for India in 2022 compared to 3.7% for the US, 4.4% for China and (-8.5%) for Russia.

The IMF’s projection of India’s GDP growth of 8.2% is 0.8% lower than the projection in January. In FY24, meanwhile, India’s GDP is expected to grow by 6.9%, which is 0.2% lower than previously forecast. Despite the revision, India will remain the world’s fastest growing major economy.

“Notable downgrades to the 2022 forecast include Japan (0.9 percentage points) and India (0.8 percentage points), partly reflecting weaker domestic demand – as higher oil prices are expected to weigh on private consumption and investment – and a pull from lower net exports” , states the IMF’s World Economic Outlook for April 2022.

Ukraine war slows recovery

Russia’s invasion of Ukraine has triggered a humanitarian crisis. The war has also led to economic damage that will contribute to a significant slowdown in global growth in 2022 and increase inflation. Food and fuel prices have risen rapidly, affecting vulnerable populations in low-income countries the hardest.

Global growth is expected to slow from an estimated 6.1% in 2021 to 3.6% in 2022 and 2023. This is 0.8% and 0.2% lower for 2022 and 2023 than expected in January.

“After 2023, global growth is expected to decline to around 3.3% in the medium term. War-induced increases in commodity prices and rising price pressures have led to 2022 inflation projections of 5.7% in advanced economies and 8.7% in emerging markets and developing economies – 1.8 and 2.8 percentage points higher than expected last January, “the IMF said.

It added that the multilateral efforts to respond to the humanitarian crisis, prevent further economic fragmentation, tackle debt problems, maintain global liquidity, tackle climate change and end the pandemic.


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