India And China Likely To Account For Half Of 2023 Global Economic Growth: IMF IMF also said that it is expecting some slowdown in the Indian economy next fiscal year and projected the growth to 6.1% from 6.8% during the current fiscal ending March 31
By Teena Jose
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The International Monetary Fund (IMF), on Tuesday, has said that India and China will account for half of the global economic growth in 2023, as the multilateral agency retained its growth forecast for Asia's third-largest economy for 2023-24, according to a PTI report. As per the report, IMF also said that it is expecting some slowdown in the Indian economy next fiscal year and projected the growth to 6.1% from 6.8% during the current fiscal ending March 31.
The IMF, in its January update of the World Economic Outlook, said that the global growth is projected to fall from an estimated 3.4% in 2022 to 2.9% in 2023, then rise to 3.1% in 2024.
"India remains a bright spot. Together with China, it will account for half of global growth this year, versus just a tenth for the US and Euro area combined," said the IMF in the World Economic Outlook.
"Our growth projections actually for India are unchanged from our October Outlook. We have 6.8% growth for this current fiscal year, which runs until March, and then we're expecting some slowdown to 6.1% in fiscal year 2023. And that is largely driven by external factors," Pierre-Olivier Gourinchas, chief economist and director, research department of the IMF, reportedly said in a statement.
In comparison with the other larger economy, the report further stated that China's real GDP slowdown in the fourth quarter of 2022 implies a 0.2% point downgrade for 2022 growth to 3.0%, the first time in more than 40 years with China's growth below the global average. Growth in China is projected to rise to 5.2% in 2023, reflecting rapidly improving mobility, and to fall to 4.5% in 2024 before settling at below 4% over the medium term amid declining business dynamism and slow progress on structural reforms, according to the report.
"Economic growth proved surprisingly resilient in the third quarter of last year, with strong labour markets, robust household consumption and business investment, and better-than-expected adaptation to the energy crisis in Europe. Another relevant point here is that if we look at both China and India together, they account for about 50% of world growth in 2023. So a very significant contribution," said Gourinchas in a blog post.
