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World Economic Outlook 2023

Why is it in the news?

  • Recently, the International Monetary Fund (IMF) has released its World Economic Outlook 2023 titled- Navigating Global Divergence, which stated that the Indian Economy will grow faster than previously estimated.

Key highlights of the Report

  • Global GDP growth is forecasted at 3% for 2023 and 2.9% for 2024.
  • Global inflation is anticipated to rise to 5.8% in 2024, reflecting tighter monetary policies.
  • Investment remains below pre-pandemic levels due to higher interest rates and stricter lending conditions.
  • China’s economy is expected to grow by 5% in 2023 but has seen a slight reduction in growth forecasts for 2023 and 2024 compared to July projections.
  • India’s GDP growth for 2023-24 is projected at 6.3%, with a similar forecast for 2024-25.
  • Concerns include tight monetary policies, an uneven pandemic recovery, and supply chain disruptions due to Russia’s invasion of Ukraine.
  • Countries are advised to rebuild fiscal buffers against future shocks.
  • The IMF recommends encouraging business investment, monitoring economic divergence, and exercising caution in managing inflation and monetary policy.

路聽聽聽聽聽聽 The IMF is an international organization with a mission to promote global economic growth, ensure financial stability, facilitate international trade, and reduce poverty.

路聽聽聽聽聽聽 Established in 1945 during the Bretton Woods conference, its primary initial objective was to coordinate international economic policies to prevent competitive currency devaluations aimed at boosting exports.

路聽聽聽聽聽聽 Over time, the IMF evolved into a lender of last resort, providing financial assistance to countries facing severe currency crises and economic challenges.

路聽聽聽聽聽聽 The IMF produces reports to assess and analyze global economic and financial conditions, including the Global Financial Stability Report and the World Economic Outlook.

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