The International Monetary Fund (IMF) has increased the GDP growth estimate for the financial year 2023-24 by 1.10 percent. IMF says that India’s GDP growth rate in the last financial year could be 7.8 percent. This is higher than the second advance estimate of 7.6 percent released by NSO. Apart from this, GDP growth has been estimated by IMF at 6.8 percent for the financial year 2024-25 and 6.5 percent for the financial year 2025-26.
IMF has said that the Indian economy is being supported by the increasing population of working class people and domestic demand. Let us tell you, for the financial year 2024-25, RBI has set a GDP growth estimate of 7 percent on an annual basis.
GDP will increase more than expected
Finance Minister Nirmala Sitharaman had last month said GDP could grow above 8 per cent in fiscal 2024, driven by “better inflation management” and the impact of “macroeconomic stability”. At the same time, regarding inflation, IMF says that it can remain on average at 4.6 percent, which is more than RBI’s estimate of 4.6 percent. Current account deficit may remain at 1.4 percent in the financial year. Earlier it was 1.2 percent.
IMF Chief Economist Pierre-Olivier Gorrinches said the global economy remains strong despite disappointing projections. Stagnant growth and inflation are slowing almost as fast as they rose. The US economy has already outpaced its pre-pandemic trend. But we now estimate that low-income developing countries will be hardest hit as many of these countries are still struggling to recover from the pandemic and the cost of living crisis.
Global Economy
The IMF has increased the global growth rate estimate for this year to 3.2 percent. It said the outlook for the global economy remains bright, with inflation under control without economic damage and output remaining high. In the latest world economic scenario, the Monetary Fund has estimated the global growth rate to be 3.2 percent this year. This is more than the estimate of 3.1 percent expressed in January. This level of growth rate is equal to 2023. According to the world economic outlook, the growth rate is expected to be 3.2 percent in 2025 also. If this happens, it will be the third consecutive year when the growth rate will be at this level.
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