Chief of the division at the International Monetary Fund, Daniel Leigh, stated on Tuesday that India's economy is one of the world's "bright spots" and is a "very strong economy."
The Global Economic Outlook statistics revealed that India still has the fastest-growing economy in the world, despite the IMF dramatically lowering its growth prediction for 2023–24 from 6.1 to 5.9 percent on Tuesday.
India's inflation is expected to fall to 4.9% this fiscal year and further to 4.4% the next year, according to the IMF.
“Yes, we have a growth rate for India which is 6.8 in 2022. Let’s not forget this is one of the bright spots in the global economy right now. Such a high growth rate and it is moderating down to 5.9 with a -.2 revision compared to January, what’s happening here is also a set of historical revisions,” said Leigh.
Leigh added by saying, “We realise that 2020-2021 has been actually a lot better than we thought and so actually there’s less room for catching up. And that pent-up demand from consumers that were informing our previous forecast is therefore going to be less because they’ve already had more catching up before. So that’s why there’s a downward revision this year. Then we go up to 6.3 next year again, a very strong economy which is necessary to allow India to continue to converge towards higher living standards and create those jobs that are necessary.”
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