WORLD
ECONOMIC OUTLOOK - REPORT & INDICES
News: IMF projects Indian economy to grow
at 6.1% in 2023
What's
in the news?
● The
IMF has projected the Indian economy to grow at 6.1% in 2023 in its World
Economic Outlook report.
Key
Highlights of Report:
1.
India’s Growth projection:
● The
IMF projected a growth rate of 6.1%
for India in 2023, which is a 2percentage point upward revision compared with
the April 2023 projection.
● This
is reflective of the “momentum” from stronger-than-expected growth in the
fourth quarter of 2022 as a result of stronger domestic investment,
2.
Global Economy:
● Global
growth is projected to fall from an estimated 5% in 2022 to 3% in both 2023 and 2024.
3.
Inflation:
● Global
headline inflation is expected to fall from 8.7% in 2022 to 6.8% in 2023 and 5.2% in 2024.
● Underlying
(core) inflation: is projected to decline more gradually, and forecasts for
inflation in 2024 have been revised upward.
4.
Financial sector:
● The
turbulence could resume as markets adjust to further policy tightening by central banks.
5.
USA and China:
● The
United States economy has slowed down considerably and faces uncertainty amid
global and domestic headwinds.
● China’s
recovery could slow, in part as a result of unresolved real estate problems,
with negative cross-border spillovers.
6.
Debt Vulnerabilities in Frontier Economies:
● There
is a need for a global debt resolution initiative to address debt
vulnerabilities in frontier economies.
● Sovereign debt distress
could spread to a wider group of economies.
7.
Central Bank's policy measures:
● The
central banks in economies with elevated and persistent core inflation should
continue to clearly signal their commitment to reducing inflation.
● A
restrictive stance, with real rates above neutral is needed until there are
clear signs that underlying inflation is cooling.
Go
back to basics:
Reports
Published by IMF:
● World
Economic Outlook
● Global
Financial Stability Report
● Fiscal
Monitor
Further
Reference - IMF