The International Monetary Fund (IMF) in its latest World Economic Outlook report, on Tuesday, slashed India’s gross domestic product (GDP) forecast by 80 percentage points to 8.2 per cent from 9 per cent for the financial year 2022-23.
According to IMF's World Economic Outlook report, "Notable downgrades to the 2022 forecast include Japan (0.9 percentage point) and India (0.8 percentage point), reflecting in part weaker domestic demand, as higher oil prices are expected to weigh on private consumption and investment, and a drag from lower net exports."
“The food and fuel price increases will hurt lower-income households globally—including in the Americas and Asia,” IMF said.
In its January report, the multilateral institution had raised India’s gross domestic product (GDP) growth forecast for FY23 to 9 per cent from 8.5 per cent.
The war and subsequent sanctions against Russia have disrupted supply chains across the world and led to higher commodity prices and this may lead to a downward revision in economic growth estimates, as per a news report in Business Standard.
(with sources inputs)
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