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Business Line reported that the International Monetary Fund sees the global economy slowing further in 2012 before gathering steam in 2013.

 

 In its latest World Economic Outlook projections, the IMF seems to have underlined that no country will be able to emerge unscathed from the continuing global turmoil, slashing its earlier estimates made in April.

 

 According to IMF data, India, in particular, will see the biggest impact in growth on account of the slowdown.

 

 The IMF has cut its 2012 growth estimate for the Indian economy by 0.7 percentage points to 6.1%, the sharpest revision for any of the countries included in the report. This translates into 10.3% reduction in the growth estimate.

 

 According to the IMF data, in 2010, the Indian economy grew by 10.8%. In 2011, this slowed to 7.1%

 

 What is more, the IMF believes that the impact of the uncertain conditions will be felt in 2013 as well: it has cut its 2013 growth estimate for India by 0.7 percentage points to 6.5%. This amounts to a 9.7% reduction of the growth estimate. With respect to the fourth quarter, the IMF believes the Indian economy will grow by 6.4% in both 2012 and 2013, a slight improvement from 6.2% in Q4, 2011.

 

 Overall, the IMF has projected that the world economy will expand by 3.5 per cent in 2012 in its latest WEO report. This is a 0.1 percentage point downward revision from its earlier estimate. This translates into a 2.8% downward revision of the projection. It has also slashed its 2013 growth estimate by 0.2 percentage points to 3.9%.

 

 Fourth quarter growth is pegged at 3.7% in 2012 and 4.1% in 2013.