IMF Regional Outlook For 2023 Expects India's Growth To Slow To 6%
The further slowdown of India’s growth to 6.1 per cent is expected in 2023 as external demand and a tightening in monetary and financial conditions weigh on growth, says the regional economic outlook of the International Monetary Fund (IMF) 2023.
As the report is majorly focusing on regional economic movements, it said that South Asia witnessed a strong recovery along with the expansion of India’s economic expansion at 6.8 per cent which is 1.4 per cent down since the last World Economic Outlook came in April 2022.
Pakistan is another country of focus under this report which is predicting inflation to double and reach up to 27 per cent.
The outlook for global economic activity, including notably for Asia and the Pacific, reflects the impact of three important headwinds: global financial tightening, the war in Ukraine, and the sharp and uncharacteristic slowdown in China.
IMF said in the report in its report that Asia and the Pacific will be the most dynamic of the world’s major regions in 2023, predominantly driven by the buoyant outlook for China and India.
Asia- Pacific seems to contribute major wealth to the world as the report anticipated China and India to be the major game changer in the economic space.
IMF also mentioned financial crisis was created due to two bank failures in the United States, the world’s fund provider has warned that these development harm the market and nation on a larger scale.
Jihad Azour, the director of the Middle East and Central Asia Department at the IMF, noted that “for those who have high levels of debt, the challenge of an increase in interest rates globally, as well as the tightening of monetary policy, is affecting them.”
While the IMF report also highlighted the attempts of most Asian central banks which are continued to use multiple tools to respond to global shocks, considering the trade-offs across policy objectives that occur because of their economies.
