World Economic Outlook October 2022

Context

The International Monetary Fund (IMF) has published the World Economic Outlook Report, October 2022, World Economic Outlook Report, best known for its global growth forecasts.

Key-Findings

• Globally
• 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 invasion of 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.
• India
• It trimmed its FY23 growth forecast for India by 60 basis points from its July projection of 7.4% to 6.8%.
• IMF expects India’s retail inflation to shoot up to 6.9% in FY23 before easing to 5.1% in the next fiscal, compared with 5.5% in FY22.

About World Economic Outlook

• It is a survey by the IMF that is usually published twice a year in the months of April and October.
• It analyzes and predicts global economic developments during the near and medium term.
• In response to the growing demand for more frequent forecast updates, the WEO Update is published in January and July, between the two main WEO publications released usually in April and October.

About International Monetary Fund (IMF)

• The IMF is a specialized agency of the United Nations to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.
• Headquarters: Washington D.C.
• The IMF was established through the Bretton Woods Conference 1944 in the aftermath of the Great Depression of the 1930s.
• Created in 1945, the IMF is governed by and accountable to the 189 countries that make up its near-global membership. 
• India joined on 27th December 1945.
• Membership
• Currently, the IMF has 190 member countries.
• India was among the 44 founding member countries of the IMF.
• Any other state, whether or not a member of the UN, may become a member of the IMF in accordance with IMF Articles of Agreement and terms prescribed by the Board of Governors.
• Membership in the IMF is a prerequisite to membership in the IBRD.
• Important publications
• The World Economic Outlook
• The Global Financial Stability Report