IMF trims India’s growth forecast

The International Monetary Fund (IMF) said on Tuesday that it expects India's economy to grow 5.9 per cent in the current fiscal year though it warned that turmoil in the financial system will hurt global growth.

In its World Economic Outlook, the IMF forecast global real GDP growth at 2.8 per cent for 2023 and 3 per cent for 2024, marking a sharp slowdown from 3.4 per cent growth in 2022 due to tighter monetary policies.

"With the recent increase in financial market volatility, the fog around the world economic outlook has thickened," the IMF said as it and the World Bank launched spring meetings this week in Washington.

The IMF predicted that the Indian economy would grow 5.9 per cent in the 2023-24 financial year, down 0.2 per cent from its January estimate, and much lower than the Indian central bank's prediction for 6.5 per cent growth during this period.