IMF cuts India’s FY24 growth forecast to 5.9%, says will remain fastest growing economy

The International Monetary Fund (IMF) on Tuesday cut India’s GDP growth forecast for the financial year 2023-24 by 20 basis points to 5.9 percent.

The latest forecast is lower than the Reserve Bank of India’s projection of 6.4 per cent. But, India will continue to be the fastest-growing economy in the world.

The IMF expects India’s retail inflation to be at 4.9% in FY24 and 4.4% in FY25.

In its World Economic Outlook report, the IMF also lowered the forecast for India for 2024-25 fiscal to 6.3 per cent from the 6.8 per cent it had predicted in January this year.

Despite a significant drop in growth rate projections from 6.8 per cent in 2022 to 5.9 per cent, India continues to be the fastest-growing economy in the world, the World Economic Outlook figures revealed.

China’s growth rate is projected to be 5.2 per cent in 2023 and 4.5 per cent in 2024 against its growth rate of three per cent in 2022.

In its annual report, the IMF predicted the global economy will grow by 2.8% this year and 3% in 2024, down 10 basis points each from its January forecasts.