International Monetary Fund (IMF) forecasts inflation in the upcoming year hitting the world economy which will degrade the overall economy. The pandemic attacks, the Russia-Ukraine War, the cost of living crisis, and economic downturns are likely to affect the global economy. The global growth of the economy fell by 6.1% in 2021, and 3.2% in 2022 and is expected to cut a 2.7% economic growth rate in 2024. It is recorded as major inflation since 2001.
According to the recent forecast by IMF “Worst is Yet to come, and many people in 2024 may feel like a recession”. United States, European Union, and China will relatively see a slower economic growth rate while one-third of the global economy is likely to contract next year as the growth rate may fall to 25% in the world economic system. With a rising shortage of food and energy and people struggling to afford the higher cost of living, inflation in 2024 will hit the lives of the common people. The recession is expected to last from six to nine months which is a long period to disrupt the whole economic system.
According to IMF report, India will Face 6.1% slower economic growth with its 2022 report which reports 6.8% degraded growth in Indian economy. Its earlier projection of growth rate was 7.4%. While the Global Economy will face recession, India will relatively be on the brighter side with its enormous Central Reserve, Tightened Monetary Funds, revised Fiscal Policies and reduced tax in excise duty. The digitalization and its progress in the related fields with enormous growth in the Indian start-ups will definitely uplift the Indian economic system. India will face the recession and inflation head on.
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