‘A bright spot on a dark horizon’: IMF chief hails India’s economic growth amid recession fears
Amid talk of slowdown and recession, the International Monetary Fund (IMF) has once again praised India for its economic growth and structural reforms carried out in recent years. IMF Managing Director Kristalina Georgieva said today that India deserves to be called a bright spot on this otherwise bleak horizon, as it has grown rapidly even in these difficult times, but above all, this growth is supported by structural reforms. She called India’s digitization a remarkable success. “That has indeed been a huge factor in India’s success,” she said.
In its World Economic Outlook, the IMF predicted growth of 6.8% for India in 2022 and 6.1% in 2023, the highest of all major economies. This makes India the fastest growing economy in the world, which is gaining importance as some countries in Europe like Germany and Italy are eyeing a recession next year.
The UK is expected to grow to adjust to 0.3% next year, while France will grow by 0.7% and the US by 1%. China’s economic growth has also slowed, and it is expected to grow to just 3.2% in 2022 and 4.4% in 2023.
Global growth is expected to slow from 6% in 2021 to 3.2% in 2022 and 2.7% in 2023. This is the weakest growth profile since 2001, barring the global financial crisis and the the acute phase of the pandemic. The IMF expects major slowdowns for the biggest economies like the United States and China.
Last month, the World Bank said that as central banks around the world simultaneously raise interest rates in response to inflation, the world could be heading for a global recession in 2023 and a series of financial crises. in emerging markets and developing economies.
However, amidst all these predictions, India has been endorsed by some of the top financial institutions and policy pundits who say the country’s fundamentals are strong and it might not be affected by possible recessions in the United States. United and European countries.
Today, IMF Chief Economist Pierre-Olivier Gourinchas said India has emerged as “a shining light” at a time when the world faces the looming prospect of recession. “Well, India is, I mean, kind of a shining light. The Indian economy is doing reasonably well,” he said. Gourinchas also hailed the country for its digital innovation and said the country was at the forefront of digitalization. .
“How these digital tools can be deployed to improve financial inclusion or to facilitate access to administrative services, etc. And that is a testament to the kind of innovation in this sector that is happening in India,” said he declared.
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