IMF may reduce growth forecast for Indian economy
According to an IMF official, the increase in loan rates across the world can have an impact on demand, as well as the pressure on China’s economy will also affect India.
The International Monetary Fund (IMF) is set to revise India’s growth forecast for the year 2022. IMF (IMF) Projected growth rate for the domestic economy (GDP Growth Rate) can be cut. IMF’s Senior Local Representative in India Louis Breuer said on Tuesday that India’s revised growth forecast in the current global scenario of a sharp rise in inflation coupled with slow economic growth.Growth Forecast) may remain lower than the old estimate of 8.2 percent. He said, ‘At present, the IMF is revising India’s growth forecast for the year 2022 and work is going on in this direction. Earlier, Moody’s had lowered the growth forecast for 2022 from 9.1 percent to 8.8 percent.
Estimates continue to be cut due to rising inflation
The IMF had said in April last that India’s growth rate could be 8.2 percent in the year 2022. Earlier, in January 2022, it had predicted a growth rate of nine percent. Along with this, the IMF had said that by the year 2023, India’s growth rate could be 6.9 percent. Breuer said that India is struggling with the problem of low employment with high inflation rate and this is not a good situation in terms of new employment opportunities being created. However, he said that India is an emerging economy and is currently going through a phase of recovery. He also called for keeping the debt stable at a high rate while keeping in mind the need to keep the weaker sections of the society safe in the current situation.
Economic growth will slow down due to rising loan rates
The IMF official said that the central banks of America and Europe have started increasing policy interest rates to control rising inflation. He said that the increase in the cost of credit is bound to have an impact on the growth rate. He feared that in the event of the US Federal Reserve raising interest rates again in the future, capital from around the world would reach America in the hope of higher returns. Along with this, he said that the world has not yet fully recovered from the clutches of the Kovid-19 epidemic. Meanwhile, some parts of China, called the factory of the world, are still under lockdown. He said, ‘If there is a situation of lethargy in China, then it will also have a negative effect on India. If China’s GDP falls by one percent, then India’s GDP will fall by 0.6 percent.
Source: www.tv9hindi.com
: Language Inputs