IMF cuts global GDP growth projection; India remains world's fastest growing major economy

The International Monetary Fund (IMF) on Tuesday projected that India will be the fastest-growing large economy in the world. Cutting India’s GDP growth forecast to 6.8 per cent for FY23, the IMF predicted that India will continue to remain on track to become one of the fastest-growing economies in the world.

The IMF in its World Economic Outlook published on Tuesday projected India's growth to stand at 6.8 per cent for 2022 and 6.1 per cent for 2023. 

World’s 3 largest economies

The IMF in its report also said that the world’s largest economies, the United States, China and the euro area will continue to stall. The major financial agency of the United Nations also stated that global inflation will likely peak at 9.5 per cent this year before slowing to 4.1 per cent by 2024. IMF also warned that a major economic slump is yet to come, and 2023 will feel like recession to many people. 

"The world’s three largest economies - US, China and the euro area - will continue to stall. The worst is yet to come and for many people, 2023 will feel like a recession," the IMF added. 

Global growth to slow down 

In the World Economic Outlook 2022 report, IMF forecasted that global growth will slow from 6 per cent in 2021 to 3.2 per cent in 2022 and 2.7 per cent in 2023. Projecting the growth, IMF said that this will be the weakest growth since 2001, except for the global financial crisis and the acute phase of the pandemic.

"The IMF forecasts global growth to slow from 6.0% in 2021 to 3.2% in 2022 and 2.7% in 2023. This is the weakest growth since 2001, except for the global financial crisis and the acute phase of the pandemic," the IMF said in its report.