IMF trims India’s growth forecast to 5.9% for current fiscal year

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NEW DELHI- The International Monetary Fund (IMF) said on Tuesday that it expects India’s economy to grow 5.9% in the current fiscal year though it warned that turmoil in the financial system will hurt global growth.

In its World Economic Outlook, the IMF forecast global real GDP growth at 2.8% for 2023 and 3% for 2024, marking a sharp slowdown from 3.4% growth in 2022 due to tighter monetary policies.

“With the recent increase in financial market volatility, the fog around the world economic outlook has thickened,” the IMF said as it and the World Bank launched spring meetings this week in Washington.

The IMF predicted that the Indian economy would grow 5.9% in the 2023-24 financial year, down 0.2% from its January estimate, and much lower than the Indian central bank’s prediction for 6.5% growth during this period.