Even though the ongoing war between Russia and Ukraine has not yielded any result so far. But it has shaken the global economy. Alam is that the growth rate of all countries including India and America has started falling due to this. The war has raised fuel and food prices, slowing growth.
The International Monetary Fund (IMF) on Tuesday projected India’s economic growth rate to be 8.2 percent in 2022. However, India will still remain the fastest growing country. But this estimate is 0.8 per cent lower than the growth forecast last year. According to the report, India’s economic growth rate was 8.9 percent in 2021. Whereas in 2023 it is likely to be 6.9 percent.
However, even after the reduction, India’s growth rate will be almost double compared to China’s growth of 4.4 percent. In its report, the IMF has projected the global growth rate to be 3.6 percent in 2022 and 2023. This is lower by 0.8 per cent and 0.2 per cent, respectively, from the estimates in January.
The IMF said in its annual report that the global growth rate is estimated to be 3.6 percent in the current year. This is significantly less than the 6.1 per cent in 2021. The 2023 economic growth forecast for Asia, including Japan, has been lowered by 0.9 per cent while for India by 0.8 per cent. Japan’s growth rate is expected to be 2.4 in 2022 and 2.3 per cent in 2023. The UK will grow at a rate of 3.7 per cent in 2022. But in 2023 its GDP is going to shrink to 1.2 only.
The report has projected China’s economic growth rate to be 5.1 percent in 2023. China’s growth rate stood at 8.1 percent in 2021. America’s growth rate is projected to be 3.7 percent in 2022 and 2.3 percent in 2023. The US economic growth rate in 2021 was 5.7 percent.
According to the report, the GDP of both Russia and Ukraine is expected to decline significantly in 2022. Ukraine will suffer more in fighting, because Putin’s army has destroyed the system there itself. The IMF says that the main reason for the slowdown in economic growth is the weakening of domestic demand. Higher oil prices are affecting private consumption and investment.