New Delhi: India remains a bright spot and together with China, it will account for half of the global growth this year, versus just a tenth for the US and euro area combined, the International Monetary Fund (IMF) said in its latest update to the biannual World Economic Outlook.
The US-based international financial institution has pegged India’s growth for 2023 at 6.1 percent. Growth in India is set to decline from 6.8 percent in 2022 to 6.1 percent in 2023 before picking up to 6.8 percent in 2024, with resilient domestic demand despite external headwinds. India and China will be the significant engines of growth this year, IMF economic counselor and director of research Pierre-Olivier Gourinchas noted in his blog.
The IMF has increased its global growth forecast for 2023 by 20 basis points to 2.9 percent, holding that the balance of risks remained tilted to the downside, but adverse risks had moderated since its October 2022 report. While global growth is projected to drop from last year’s estimated 3.4 percent to 2.9 percent, it will again rise to 3.1 percent in 2024.