Current Affairs 2023 – Current Affairs for January 2023
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International Monetary Fund forecasts Indian economy to slow down to 6.1% in 2023 from 6.8% in 2022
According to the latest update made by the International Monetary Fund (IMF) towards the projection of the growth rate of India. The IMF reported in their projection that the growth rate of India is going to decline from 6.8 percent which was 6.1 percent in 2022.
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The International Monetary Fund (IMF) has released its update on its World Economic Outlook for the month of January 2023. As per the update, the International Monetary Fund (IMF) said that the growth rate in India which is set to fall to 6.1 percent in 2023 before reaching 6.8 percent in 2024, while the growth rate in India was 6.8 percent in 2022 and also mentioned that the global growth rate which was 3.4 percent in 2022 but the global growth rate is projected to fall to 2.9 percent in 2023 before rising to 3.1 percent in 2024.
In the report the International Monetary Fund (IMF) also said that compare with the forecast for October 2022 with the forecast for 2023 it is at about 0.2 percentage points higher. The IMF also added in their report that both the forecast reflects positive surprises and greater resilience than expected in many economies in the world.
The International Monetary Fund (IMF) also admitted in their report that a negative growth in global GDP or global GDP per capita is not expected.
The International Monetary Fund (IMF) also noted in its report that negative growth in global GDP or global GDP per capita often occurs when there is a global recession. It also said in its report that yet the projected global growth for 2023 and 2024 is lower than the historical (2000-19) annual average of 3.8 per cent.
The IMF said that the forecast of low global growth rate in 2023 reflects the Central Bank especially in advanced economies will be compel to rise the interest rates to fight with the forecasted inflation.
The IMF also added in their report that the decline in growth rate in 2023 from 2022 is driven by advanced economies or the emerging market and developing economies. According to the update the global growth is expected to pick up in China with the full reopening of the economy in 2023.
The IMF is expecting in their report that there is a pickup in global growth in 2024 for both the groups of world’s economy. It reflects a gradual recovery from the effects of the war of Ukraine and subsiding world inflation. The IMF also added in their report that following the path of global demand for the world trade growth is expected to decline in 2023 by 2.4 per cent despite an ease of supply constraints may rising to 3.4 per cent in 2024.
The IMF said growth in emerging and developing Asia is expected to pick up to 5.3 percent in 2023 and 5.2 percent in 2024 after an unexpected slowdown of 4.3 percent in 2022 due to China’s economy. According to the latest update of IMF that the growth in China is projected to rise to 5.2 per cent in 2023 showes a rapidly improving mobility and to fall to 4.5 per cent in 2024 before settling at below 4 per cent. But the IMF projected that the medium term amid declining business dynamism and slow progress on structural reforms can be reach down at below 4 per cent before fall to 4.5 per cent in 2024.
Important points to be remember –
• According to the International Monetary Fund the projected growth rate for India is actually unchanged from the October Outlook .
• Growth rate in India is set to decline from 6.8 percent in 2022 to 6.1% in 2023 before picking up to 6.8% in 2024. • The growth rate for this current fiscal year of India has 6.8% which will remain unchanged until March after then it is expected to face some slowdown to 6.1% in the fiscal year 2023.
• The Chief Economist and Director of the Research Department of IMF Pierre-Olivier Gourinchas, informed that the setback in the growth rate for the economy is largely affected by the external factors.
• According to the January update the growth rate in emerging and developing Asia is expected to rise to 5.3% in 2023 and 5.2% 2024 after the unexpected slowdown in 2022 to 4.3% attributable to China’s economy.
Some Important Information
What is The International Monetary Fund ? – The International Monetary Fund is a major financial agency of the United Nations, and an international financial institution.
Where is the headquarter of IMF situated ? – The headquarter of IMF is situated in Washington, D.C. America.
How many member countries are there with IMF ? – The IMF is consisting of 190 countries.
What are the main organ of International Monetary Fund ? – The main organ of IMF is a Board of Governors.
When was the IMF founded ? – The IMF was founded in July 1944.
Presently who is the Managing Director of IMF ? – Presently Kristalina Georgieva is the managing director of IMF.
Who is the First Deputy Managing Director of IMF ? – An Indian-American economist Gita Gopinath is the first deputy managing director of the International Monetary Fund (IMF) since 21 January 2022.
Who was the founders of IMF ? – John Maynard Keynes, Harry Dexter White was known as the founder of IMF.
Which is the Parent organization of IMF ? – The United Nations is the parent organization of IMF.
What was the purpose to laid the foundation stone of IMF ?
The foundation of the IMF was laid down to tackle mainly these primary functions –
01) to oversee the fixed exchange rate arrangements between countries.
02) to help the national governments to manage their exchange rates and allowing these governments to prioritize economic growth.
03) to provide short-term capital aid to manage the balance of payments.
04) to prevent the spread of international economic crises.
05) to help the international economy after the Great Depression of World War II
06) to provide capital investments for economic growth and infrastructural development projects of the world.
What is World Economic Outlook published by IMF ?
World Economic Outlook is a survey published for twice a year by International Monetary Fund.
What is the purpose to publish the survey report ?
The purpose to publish the report is to analyze the global economy for short and medium term economic development.
What are the benefits to have the institution like International Monetary Fund ?
Following are the main benefits to have IMF –
01) The IMF plays a role of a platform for the member countries to access the information on the economic policies of all member countries.
02) The IMF provides an opportunity to influence other members’ economic policies.
03) The IMF provides technical assistance in banking, fiscal affairs, and exchange matters.
04) The IMF provides financial support in times of payment difficulties.
05) The IMF provides an opportunities to increase world trade and investment.
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