Global growth is expected to slow further next year says IMF

The International Monetary Fund (IMF) has released estimates on the growth of other major economies including India. According to the Global Agency, India's GDP growth in 2022 and 2023 will be the fastest compared to other countries. However, the pace of growth will be slightly slower than before. Because rising interest rates around the world, supply problems and the ongoing war in Europe have affected economic activity. The IMF has reduced the estimate in the World Economic Outlook report released on Tuesday.

According to the IMF, India's economic growth will be 6.8 percent in 2022. Whereas in July this year, the GDP growth estimate for 2022 was given at 7.4 percent and in January to 8.2 percent. In FY22, India's GDP growth was 8.7 percent. According to the IMF report, India's GDP growth estimate has been reduced by 0.6 percent from the July estimate. On the other hand, the condition of the world's big economy is worse.

Due to the Zero Covid policy in China, the economy has been badly affected by the lockdown. Due to this the property sector has suffered badly. This sector accounts for 20 percent of the economic activity. According to the IMF, China's GDP growth can be 3.2 percent in 2022 and 4.4 percent in 2023, while the growth of 8.1 percent was recorded in 2021. America's growth is also projected to be only 1 percent in 2023. Here growth is affected by rising interest rates and financial conditions.

The forecast on global growth for 2022 has also been reduced to 3.2 per cent and for 2023 to 2.7 per cent, compared to 6 per cent in 2021. This is the weakest growth since 2001 except for the corona pandemic and the global financial crisis. According to the Director of Research of the IMF, the Russian-Ukraine war, slowdown in China and record inflation have had a bad effect on the global economy.

In 2023, there will be a recession like situation
He said that in 2023, more than a third of the global economy will see a decline. There will be a steady decline in the economy of America, European Union and China. Overall, the bad phase is yet to come, in 2023 it will start to feel like a recession. According to the IMF report, the global economy has been badly affected due to the Russia-Ukraine war. This created an energy crisis in Europe, which has made living cost expensive. As a result, it is having an impact on economic activity.

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