New Delhi: International Monetary Fund (IMF) on Tuesday cut the estimated economic growth of India for the financial year 2021-22 to 9 percent on concerns over the impact of the new Covid variant.
In the previous edition of the world economic outlook published in October 2021, the IMF estimates that India’s gross domestic product (GDP) grew by 9.5 percent for the current fiscal year.
For the next fiscal year 2022-23, the IMF projected the Indian economy to grow at 7.1 percent.
The head of the IMF economist Gita Gopinath said that this slight downgrade was mainly due to the impact of the spread of omicron variants.
“If you see the fiscal year 2021-22, we have a little downgrade -0.5 percentage points and for the next 2022-23 fiscal year we have a slight increase of 0.5 percentage points.
So, the previous growth of the fiscal year is now nine percent and for This year is now nine percent.
We move it a little, “Gopinath told reporters during a press conference.
According to the IMF, the prospect of India for 2023 is marked at the expected increase in credit growth and, subsequently, investment and consumption, building a better financial sector performance than anticipated.
According to the first advanced estimate of GDP released a few weeks ago, the government projects Indian GDP to grow by 9.2 percent for FY22.
In addition, the Reserve Bank of India (RBI) has projected 9.5 percent GDP growth for the same period.
Global growth is also expected to be moderate from 5.9 percent by 2021 to 4.4 percent by 2022, half a percentage point is lower for 2022 than in October WEO, mostly reflects the estimated decline in the two largest economies – US and China.
The IMF cut the growth forecast for the United States – the largest economy in the world – up to 4 percent of 5.2 percent predicted in October.
The Chinese economy is expected to grow 4.8 percent this year from 8.1 percent last year and 0.8 percentage points slower than the IMF expected in October.
(With input from the agency)