Tuesday, September 26 2023

The Global Economic Outlook report1 published by the International Monetary Fund (IMF) showed that the global GDP (Gross Domestic Product) growth decreased from 6 per cent in 2021 to an approximately 3.5 per cent in 2022. In 2022, advanced economies (AE) grew by 2.7 per cent but emerging market and developing economies (EMDE) grew by a far higher rate of 4.0 per cent. The expected global growth is anticipated to decrease from an estimated 3.5 per cent in 2022 to 3.0 per cent in both 2023 and 2024.

The projected outlook for the year 2023 shows a modest increase compared to the previous projection given in the April 2023 World Economic Outlook (WEO). It is anticipated that the global headline inflation rate would decline, decreasing from 8.7 per cent in 2022 to 6.8 per cent in 2023, and further to 5.2 per cent in 2024. The anticipated trajectory of underlying (core) inflation indicates a more gradual decrease, whereas the projections for inflation in 2024 have been adjusted upwards. Despite global challenges, the Indian economy grew 6.9 per cent in FY 2022-23. The rise was fueled by robust demand, government-supported investment, and efforts to improve transit infrastructure, logistics, and the business environment.

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