Context: In its World Economic Outlook report, International Monetary Fund (IMF) lowered India’s economic growth projection for the current fiscal to 5.9 per cent from 6.1 per cent earlier.
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IMF has forecast India’s economic growth to be 5.9% for the fiscal year 2023-24, lower than the Reserve Bank of India’s projection of 7%. Despite the drop in growth rate projections, India remains the fastest-growing economy in the world, according to the IMF’s World Economic Outlook figures. Meanwhile, China’s growth rate is projected to be 5.2% in 2023 and 4.5% in 2024, against a growth rate of 3% in 2022. The global economy is expected to recover gradually from the pandemic, with global growth projected to bottom out at 2.8% this year before rising modestly to 3% in 2024.
About International Monetary Fund (IMF)
- The IMF was established in 1944 in the aftermath of the Great Depression of the 1930s.
- Today, its membership embraces 190 countries, with staff drawn from 150 nations.
- The IMF is governed by and accountable to those 190 countries that make up its near-global membership.
- It works to achieve sustainable growth and prosperity for all of its 190 member countries. It does so by supporting economic policies that promote financial stability and monetary cooperation, which are essential to increase productivity, job creation, and economic well-being.
- The IMF has three critical missions furthering international monetary cooperation, encouraging the expansion of trade and economic growth, and discouraging policies that would harm prosperity.
- The IMF’s resources mainly come from the money that countries pay as their capital subscription (quotas) when they become members. Each member of the IMF is assigned a quota, based broadly on its relative position in the world economy. Countries can then borrow from this pool when they fall into financial difficulty.
Publications of IMF
- World Economic Outlook
- Global Financial Stability Report
- Fiscal Monitor
