IMF cuts India's growth rate to 6.8% for 2022 , India will still remain the fastest growing major economy in the world

Tags: Economy/Finance

The International Monetary Fund (IMF) in its annual World Economic Outlook released on 11 October 2022 has cut the expected growth rate of India to 6.8% in 2022, but still it will be the fastest growing major economy in the world. In July 2022, the IMF had said that India would grow at 7.4% in the present fiscal.  IMF is the latest international agency which has cut the Indian growth rate. IMF expects the Indian economy to grow by 6.1% in 2023.

However, the IMF still expects the Indian economic growth to be highest amongst the major economies in the world ahead of China (4.4%), Saudi Arabia (3.7%), and Nigeria (3%).

World Economic Growth prospects 

According to the IMF the world economy is likely to grow by 3.2 % in 2022 with the United State economy expected to grow by 1.6%.

The IMF said global GDP growth in 2023 will slow to 2.7%, as higher interest rates slow the U.S. economy, Europe struggles with spiking gas prices and China contends with continued COVID-19 lockdowns and a weakening property sector.

The three largest economies, the United States, China and the euro area will continue to stall," IMF chief economist Pierre-Olivier Gourinchas said in a statement. "In short, the worst is yet to come, and for many people, 2023 will feel like a recession."

IMF World Bank annual meeting 2022

The report was released on the eve of the Annual meeting of the IMF and World Bank which is going to be held in Washington D.C from 10 -16 October 2022. 

This is the first in person meeting to be held after the three years due to covid related restriction.

Indian Finance Minister Nirmala Sitharaman is leading the Indian delegation to the meeting.

International Monetary Fund 

• It is an International financial institution which was set up after the Bretton Woods conference held in the United States from July 1 to 22, 1944. 
• It was set up in July 1944.
• It was set up to provide loans to the member countries which were facing a balance of payment crisis.
• A country which is a member of the IMF automatically becomes a member of the World Bank.

Total member of IMF: 189

Headquarters: Washington D. C, United States of America

Managing Director: Kristalina Georgieva

Accounting Unit of IMF: Special Drawing Rights (SDR)