IMF slashes India’s FY24 forecast to 5.9%

The International Monetary Fund (IMF) has lowered India’s GDP growth forecast for the financial year 2023-24 by 20 basis points to 5.9%. The latest prediction is less than the Reserve Bank of India’s projection of 6.4%. Nonetheless, India remains the world’s fastest-growing economy, according to the IMF.

The IMF report also expects India’s retail inflation to be at 4.9% in FY24 and 4.4% in FY25. The forecast for India for the 2024-25 fiscal year was also downgraded from 6.8% to 6.3% from the January projection.

Although the growth rate projection for India decreased from 6.8% in 2022 to 5.9% in 2023, India remains the fastest-growing economy in the world, as shown in the World Economic Outlook figures.

According to the report, China’s growth rate is expected to be 5.2% in 2023 and 4.5% in 2024 against its growth rate of three per cent in 2022. In its annual report, the IMF predicts the global economy will expand by 2.8% this year and 3% in 2024, down 10 basis points from its January forecast.