In recent days “World Economic Outlook” report, the International Monetary Fund (IMF) increased India’s GDP growth forecast for FY24 by 40 basis points (bps) to 6.7% and for FY25 by 20 bps to 6.5%, citing “resilient domestic demand.
” India’s major economy would continue to grow at the fastest rate in the world, at 6.7%. Still, the FY24 prognosis is 60 basis points below the National Statistical Office’s (NSO) estimate. Based on data extrapolated for the first seven to eight months of the current fiscal year, the NSO predicted earlier this month that India’s economy will grow at a rate of 7.3%.
Additionally, the IMF’s prediction for FY24 is 30 basis points less than the RBI’s 7.0% estimate. According to the finance ministry, the strong Q2 GDP outturn has caused the IMF to increase India’s growth prediction for FY24 from 6.3% to 6.7%. India’s GDP grew by 7.6% in Q2 FY24, substantially more than the market had anticipated.
Due to waning inflationary pressures, the IMF has revised its prediction for the global economy, which now calls for 3.1% growth in 2023—20 basis points faster than previously anticipated. It does, however, note that “turbulence” might be ahead and that the rate of increase is still slow.
According to the IMF, China’s economy will grow at 4.6% in 2024, 40 bps faster than its previous estimate, and the US economy will grow at 2.1% in 2024, 60 bps faster than its prior estimate.
