Sustained slowdown

The global economic picture emerging from the International Monetary Fund’s (IMF’s) latest World Economic Outlook (WEO) is concerning. Medium-term growth is unlikely to recover to the levels seen in recent decades. According to the latest projections, global growth is expected to slow to 2.8 per cent in 2023, compared to 3.4 per cent in 2022. The April projection is 0.1 percentage point lower than the January update. The IMF has also revised its growth projections for India. It now expects the Indian economy to expand 5.9 per cent in the current fiscal year, which is 0.2 percentage points lower than the January projection. It has also reduced the projection for 2024-25 by 0.5 percentage points to 6.3 per cent.