IMF slashes global growth outlook, India GDP estimate also not spared

The International Monetary Fund cut its global growth projections for 2022 and 2023, calling the world’s economic outlook “gloomy and more uncertain.

“A tentative recovery in 2021 has been followed by increasingly gloomy developments in 2022,” the report said. The Washington-based institute now expects the world economy to grow 3.2% in 2022 before slowing to a 2.9% GDP rate in 2023. This marks a 0.4-0.7% cut in estimates.

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Worsening growth prospects in the U.S., China and India drove the IMF’s downward revisions.

India's economy is now projected to grow by 7.4% in FY23, 80 basis points lower than IMF’s April projection of 8.2%. India’s FY24 growth forecast has also been cut by 80 basis points to 6.1%.

"For India, the revision reflects mainly less favourable external conditions and more rapid policy tightening," the report said.