KOLKATA: A top official of the International Monetary Fund said on Tuesday that the IMF is lowering India's growth projection for 2022, which could be lower than its previous expectation of 8.2%, due to the risk of global stagflation.

The International Monetary Fund cut India's growth forecast to 8.2% in April, down from 9% in January. The country is anticipated to grow at a rate of 6.9% by 2023, according to the report. "India's growth forecast  for 2022 is now being revised by the IMF, and it may be lower than 8.2%. At the moment, this is a work in progress "Luis Breuer, the IMF's Senior Resident Representative in India, spoke at an MCC Kolkata interactive session on the "World Economic Outlook."

He stated that the country is experiencing high inflation and low employment, which does not auger well for job prospects. Breuer also called for debt stabilisation at higher levels, citing the impact of the COVID-19 pandemic on public budgets as well as the necessity to protect vulnerable sections of society.

He said, India is viewed as an emerging economy that is now recuperating. the IMF official said, central banks in the United States and Europe have begun to raise interest rates to combat rising inflation brought on by rising commodity prices and supply disruptions. "In the future, the US Federal Reserve is projected to raise interest rates, and the global economy is likely to plateau at 3.6 percent," he said.

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