IMF revises India’s FY24 GDP growth forecast upward to 6.3%

The International Monetary Fund (IMF) has revised India’s economic growth forecast for the current fiscal year, increasing it from 6.1 per cent to 6.3 per cent, as per its October 2023 World Economic Outlook (WEO) report released on Tuesday.

India's GDP forecast increased by IMF.(Getty Images/iStockphoto)
India’s GDP forecast increased by IMF.(Getty Images/iStockphoto)

“Growth in India is projected to remain strong, at 6.3 per cent in both 2023 and 2024, with an upward revision of 0.2 percentage points for 2023, reflecting stronger-than-expected consumption during April-June,” the IMF report said.

The Reserve Bank of India has projected GDP growth to reach 6.5 per cent.

IMF anticipates that consumer price inflation in the South Asian country will climb to 5.5 per cent in 2023/24 before gradually subsiding to 4.6 per cent in 2024/25. Furthermore, the IMF projects that the current account deficit of the nation will remain stable at 1.8 per cent of GDP in both FY24 and FY25.

What are global GDP growth projections?

In its latest World Economic Outlook (WEO), the IMF has maintained its previous estimate for global real GDP growth in 2023 at 3.0 per cent. However, the organization has slightly adjusted its 2024 forecast, reducing it by 0.1 percentage point to 2.9% from the prediction made in July.

IMF Growth Forecast for Major Economies in 2024:

• USA: 1.5 per cent

• Germany: 0.9 per cent

• France: 1.3 per cent

• Italy: 0.7 per cent

• Spain: 1.7 per cent

• Japan: 1.0 per cent

• Canada: 1.6 per cent

• China: 4.2 per cent

• India: 6.3 per cent

• Russia: 1.1 per cent

•Brazil: 1.5 per cent

• Mexico: 2.1 per cent

•Morocco: 3.6 per cent

• Saudi Arabia: 4.0 per cent

•Nigeria: 3.1 per cent

•South Africa: 1.8 per cent

The report notes that the global economy continues to recover slowly from the pandemic, the Russia-Ukraine war, and the cost-of-living crisis.

“Despite the disruption in energy and food markets caused by the war, and the unprecedented tightening of global monetary conditions to combat decades-high inflation, the global economy has slowed, but not stalled,” the report said.

“Yet growth remains slow and uneven, with growing global divergences. The global economy is limping along, not sprinting,” it added.

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