IMF cuts global GDP growth projection; IMF expects inflation in India to come down to 4 percent next year

International Monetary Fund has projected that global growth will slow from 6 percent in 2021 to 3.2 percent in 2022 and 2.7 percent 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. It said that the world’s largest economies US, China, and the Euro area will continue to stall.

In the World Economic Outlook 2022 report, IMF said that India will be the fastest-growing large economy in the world. Cutting India’s GDP growth forecast to 6.8 percent for Financial Year 2023, the IMF predicted that India will continue to remain on track to become one of the fastest-growing economies in the world.

IMF expects that inflation in India will come down to 4 percent range next year. It said that global inflation will likely peak at 9.5 percent this year before slowing to 4.1 percent by 2024. IMF also warned that a major economic slump is yet to come, and 2023 will feel like a recession to many people.



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