India to grow at 9% in 2022 & 2023; well above US, China, Europe & World economies: IMF

The International Monetary Fund (IMF) on Tuesday predicted that the global economy will grow at 4.4% in 2022 and is expected to slow down to 3.8% in 2023. While releasing the latest projections for world growth, the IMF has revised India’s growth prediction for the current fiscal year ending on March 31 by 0.5% (from 9.5% earlier to 9% now) which still retains its position as the world's fastest-growing major economy.

As per the latest figures released by the global monitoring organization, India’s estimated growth prediction stood at 9% for 2021-22. IMF has also predicted that the growth rate will remain consistent (at 9%) in the next economic year 2022-2023.

Joining a host of other agencies, IMF has revised the growth predictions in view of the rapidly spreading new COVID-19 variant-Omicron which is driving the latest wave in the world. The new variant has impacted business activities in several areas after the imposition of stringent norms. Mobility has also been vitiated after the imposition of strict international travel norms. 

India to remain head-and-shoulders above World average; US narrows gap to China

Besides India, the IMF has predicted that the US economy will grow at 4% while China will grow at 4.8%. The up-to-date statistics suggest that US is closing the growth gap with China, with a meagre difference of 0.8%. 

Meanwhile, the European Area’s economic rise is predicted to fall from 5.2% this fiscal to 3.9% in 2022-23.

Earlier in October last year, IMF had predicted India's GDP growth at 9.5% in 2021 and 8.5% for 2022. The latest predictions suggest an increase in the growth rate of the Indian economy by 0.5% in the forthcoming fiscal (2022-23) as the projection has moved up from 8.5% earlier to 9% now.

It is significant to note that the global agency believes that the Indian economy’s growth will remain at 9% for two years in a row, which underscores a significant rate of recovery of a COVID-19 battered economy with respect to other nations - while one year can be attributed to a base effect, the second occurs despite it.

Global Economy To Lose $12.5 Trillion By 2024 Due To COVID-19: IMF MD

This comes after the IMF Managing Director on Jan 21 stated that the coronavirus pandemic would cost the global economy $12.5 trillion in output by 2024. On Thursday, Kristalina Georgieva stated, “The world economy between now and 2024 is losing USD 12.5 trillion in output because of COVID. And we are going to actually update this number revising it upwards because of Omicron," as per Sputnik.

These comments of the IMF director came after a new United Nations World Economic Situation and Prospects (WESP) 2022 report released last week which revealed that after a robust rebound in 2021, the global economy is expected to grow by just 4% in 2022, while 3.5% the following year. The report also stated that there were substantial obstacles to the world economy which were posed by new waves of COVID-19 infections comprising chronic labour market issues, persisting supply-chain challenges as well as growing inflationary pressures. According to the report, in 2021, the economy grew by 5.5 per cent.  

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