Inflation & Growth Rate: The International Monetary Fund (IMF) has estimated that India’s inflation rate will come down to 4 percent in the next financial year. This may be possible due to the additional monetary tightening of the RBI. The inflation rate is currently 6.9 percent, far above the target of the Reserve Bank. Daniel Leigh, head of the IMF’s World Economic Studies Division, said that India’s inflation rate may come down to 4 percent in the next fiscal year, in line with the Reserve Bank of India’s target. He said that strictness in the monetary policy of the Reserve Bank will ensure this.
Pierre-Olivier Gourinchas, chief economist of the International Monetary Fund, said that the inflation rate in India is still much higher than the central bank’s target. It was estimated that this year the inflation rate in India will be 6.9 percent, which has come down to 5.1 percent. Releasing the IMF’s World Economic Outlook (WEO) report, he said that overall monetary policy is going to be tight in the current financial year.
According to the International Monetary Fund, the global inflation rate is estimated to be 8.8 percent this year, which may come down to 6.5 percent next year. Gurinchas said that overall India is doing better in 2022 and is expected to see faster growth in 2023. He said that India’s growth rate is estimated to be 6.8 percent in the current financial year and may be 6.1 percent next year.
Regarding the cut in India’s growth rate estimates for next year, Gurinchas said that this has been said in view of the external outlook and tough financial conditions. India is the fastest growing economy in the world even after the cut in the growth rate estimates.
The IMF has also forecast about global growth. The International Monetary Fund said that this year the global growth will be 3.2 percent and next year it may decrease to 2.7 percent. Gurinchas said that the situation is yet to get worse. He said, ‘We estimate that a third of the global economy will be technically in recession.’
The IMF projected that in 2022 the US economy will achieve a growth rate of only 1.6 percent, China 3.2 percent and the Eurozone 3.1 percent. It said that increasing interest rates in the US will slow down the pace of growth.