IMF warns about rising inflation around the world including India
The International Monetary Fund (IMF) has slashed India's growth forecast for the financial year 2022-23.
The IMF has reduced it from 9 to 8.2 percent.
The International Financial Organization has said that the war between Russia and Ukraine will affect consumption around the world in the long run and rising inflation will also have a global impact.
The organization has released its World Economic Report, in which estimates have been released at the global level.
On the prospects of India's growth rate, the IMF has said that high crude oil prices will have a great impact on private consumption and investment.
With the downgrade of India's growth forecast, the IMF said that the current account deficit is estimated to be 3.1 percent in 2022-22, from 1.5 percent in 2021-22.
The International Monetary Fund has also reduced India's GDP growth rate from 7.1 to 6.9 percent in 2023-24.
However, with an estimate of 8.2 per cent, India will be the fastest growing large economy country in the world.
India's growth rate will be almost double compared to China's growth of 4.4 percent.
In the annual World Economic Outlook report released here, the IMF said that the global growth rate is estimated to be 3.6 percent in the current year.
This is much less than the 6.1 percent in 2021.
India's economic growth rate was 8.9 percent in 2021.
Whereas in 2023 it is likely to be 6.9 percent. One of the main reasons for the decrease in the economic growth rate estimate for the year 2023 is the Ukraine war.
Due to this, the prices of fuel and food items have increased and the pace of growth has slowed down.
The economic growth forecast for 2023 for Asia, including Japan, has been lowered by 0.9 percent while for India by 0.8 percent.
This indicates weak domestic demand as higher oil prices are expected to adversely affect private consumption and investment.
In its report, the Monetary Fund has projected the global growth rate to be 3.6 percent in 2022 and 2023.
This is 0.8 percent and 0.2 percent less than the estimate expressed in January, respectively.
The reduction in the growth rate estimates tells the impact of the war on Russia and Ukraine along with other countries of the world.
The report has projected China's economic growth rate to be 4.4 percent in 2022 and 5.1 percent in 2023.
China's growth rate stood at 8.1 percent in 2021.
The growth rate of America is projected to be 3.7 percent in 2022 and 2.3 percent in 2023.
In the year 2021, the economic growth rate of America was 5.7 percent.
According to the report, the gross domestic product (GDP) of both Russia and Ukraine is expected to decline significantly in 2022.
The biggest fall will be in Ukraine.
The reason for this is the invasion of Ukraine and the massive damage to infrastructure and people moving to safer places.