IMF slashes India’s growth forecast to 8.2% for FY23

New Delhi, Apr 19: The International Monetary Fund (IMF) sharply slashed India's growth forecast for the current financial year by 80 basis points to 8.2 per cent, cautioning that the ongoing Russia-Ukraine war will in the long run hurt consumption and also growth as inflation will rise.

The IMF said that the Ukraine war would "severely set back the global recovery,"slow down growth and increase inflation even further.

"Global growth is projected to slow from an estimated 6.1 percent in 2021 to 3.6 percent in 2022 and 2023. This is 0.8 and 0.2 percentage points lower for 2022 and 2023 than projected in January," IMF said in a statement.

"Beyond 2023, global growth is forecast to decline to about 3.3 percent over the medium term. War-induced commodity price increases and broadening price pressures have led to 2022 inflation projections of 5.7 percent in advanced economies and 8.7 percent in emerging market and developing economies-1.8 and 2.8 percentage points higher than projected last January," it said.

"Multilateral efforts to respond to the humanitarian crisis, prevent further economic fragmentation, maintain global liquidity, manage debt distress, tackle climate change, and end the pandemic are essential, the agency added.