The war also had an impact on the IMF's growth projections

- It would be too early to say anything about economic outcomes: A new challenge to the global economic recovery has emerged

The International Monetary Fund released its biennial world economic projections amid yet another geopolitical crisis in West Asia following the Russia-Ukraine war. There may be more uncertainty about its development projections amid fears of more countries joining the conflict. The International Monetary Fund said it was monitoring developments in Israel and Gaza and that it was too early to assess any economic impact.

Economic policy experts said the conflict had no direct impact on the agenda of the IMF-World Bank annual meeting, which was held recently. However, this phenomenon may pose a new challenge to the global economic recovery.

The world has not fully recovered from the corona pandemic and the Russia-Ukraine conflict has created a food and energy security and supply crisis. A deadlock has occurred. In such a situation, the possibilities of the political environment will also change and the uncertainty may increase further.

The dire financial situation in most regions, Russia's invasion of Ukraine and the Covid-19 pandemic had a serious impact on the IMF's World Economic Outlook last year.

In its World Economic Outlook update released in July, the IMF raised India's economic growth forecast for fiscal 2024 by 20 basis points to 6.1 percent, citing the country's better-than-expected growth in the March quarter of fiscal 2023. The IMF raised its global growth forecast for 2023 by 20 basis points to 3 percent, improving growth forecasts for the US (20 basis points) and the UK (70 basis points).

The August Economic Survey released by India's Finance Ministry maintained its GDP growth forecast of 6.5 percent for fiscal 2024. India's economic growth rate estimate for the current financial year has been increased by twenty basis points to 6.30 percent by the International Monetary Fund (IMF), stating that consumption spending in India was stronger than expected in the April to June quarter.

In its latest report on the World Economic Outlook, the IMF has maintained its global economic growth forecast for the current year at 3 percent, while reducing the forecast for 2024 by 10 basis points to 2.90 percent.

The report by the fund has noted that growth in India appears to be strong. The GDP estimate for the current financial year has been increased to 6.30 percent and the estimate for the next financial year is also 6.30 percent. Earlier, the World Bank also estimated the economic growth rate for India at 6.30 percent. However, the country's Ministry of Finance and the Reserve Bank have expected the economic growth rate to be 6.50 percent.

Inflation Matters The Fund has noted that the Reserve Bank's monetary policy has been supportive of achieving the inflation target. The report also noted that economic activities at the global level are still falling short of the pre-Corona levels, especially in emerging markets and developing countries, and the gap between different regions is increasing.

Although the current situation in Israel will not have an immediate impact on trade, experts believe that if this conflict continues for a long time, like the Russia-Ukraine conflict, it could pose a potential threat to the global economy.