An IMF official said that with a decline in growth forecasts from June and forecast of a recession next year, a growth rate of 6.1% in the next fiscal was “still a bright spot” for India.
An IMF official said that with a decline in growth forecasts from June and forecast of a recession next year, a growth rate of 6.1% in the next fiscal was “still a bright spot” for India.
Even as it praised India’s growth forecast of 6.8% in FY 2012-23 and 6.1% in FY 2013-24, the International Monetary Fund (IMF) cautioned that the overall global conditions Given there was limited policy space. With growth forecasts declining since June, and forecasting a recession next year, the next fiscal year growth rate of 6.1% was “still a bright spot” for India, said Anne-Marie Gulde-Wulf, of the Department of Asia and the Pacific. said the deputy director at a press conference at the IMF headquarters here on Thursday evening.
“But, it is absolutely true that one needs to see what else can be done,” she said in response to a question. Hindu What can India do to counter or mitigate the slowdown (6.1%) in the next financial year?
The IMF does not see “much room” for fiscal support given the level of debt, so any further fiscal support should be “very targeted” and time-limited, Ms Gulde-Wulf said, adding that monetary policy , too, had to be a “tightening bias”.
“But it is important…whatever can be done on the structural front, do not create barriers to growth and try and also create hope for continued growth,” she said.
Asia-Pacific expected to grow at 4% in 2022
Growth rates for Asia and the Pacific as a whole were expected to come in at 4.0% and 4.3% in 2022 and 2023, respectively. This is much lower than the 5.5 per cent average growth over the past two decades, but the region is performing better than the rest of the world, Krishna Srinivasan, head of the Asia and Pacific Department at the IMF, told reporters on Thursday.
The IMF recommends monetary tightening and fiscal consolidation for the sector, Mr. Srinivasan said, with the exception of China and Japan, “where recovery has been weak, sluggish remains substantial, inflation has not risen as rapidly as elsewhere.” is, and the policy location exists”
Srinivasan said US monetary tightening, which has led to wide interest rate differentials, has been the primary factor behind the “significantly faster” depreciation of Asian currencies.
IMF Managing Director Kristalina Georgieva had made positive remarks on India’s development in her inaugural press conference on Thursday. “India deserves to be called a bright spot on this otherwise dark horizon because it has been a fast growing economy even during these difficult times, but most importantly, this growth is based on structural reforms.” Ms Georgieva also said that India takes the G20 presidency (for 2023) from a “position of power”.