The International Monetary Fund (IMF) in it’s report said that the Global economic activity is experiencing a broad-based and sharper-than-expected slowdown, with inflation higher than seen in several decades.
The cost-of-living crisis, tightening financial conditions in most regions, Russia’s military operation in Ukraine, and the lingering COVID-19 pandemic all weigh heavily on the outlook.
Global growth is forecast to slow from 6.0 percent in 2021 to 3.2 percent in 2022 and 2.7 percent in 2023. This is the weakest growth profile since 2001 except for the global financial crisis and the acute phase of the COVID-19 pandemic. However, World Bank chief economist of South Asia Hans Timmer has said that India has done relatively well compared to other countries in South Asia.
There are more buffers in India, especially large reserves at the central bank. That’s very helpful, Timmer had also praised the government of India for very actively reacting to the Covid crisis.