The International Monetary Fund on Tuesday raised India’s economic growth projection for 2023-’24 to 6.1% from 5.9% predicted in April.

The global financial institution’s World Economic Outlook report said that the upward revision in India’s growth projection reflects “momentum from stronger-than-expected growth in the fourth quarter of 2022” as a result of stronger domestic investment.

The International Monetary Fund’s prediction, however, is below the figure of 6.5% projected by the Reserve Bank of India for the financial year 2023-’24.

Tuesday’s report also projected global real Gross Domestic Product growth at 3%, which is 0.2% higher than the prediction of 2.8% made in April. Global growth is expected to remain at 3% in 2024 as well.

The International Monetary Fund said that the United States’ economic growth is expected to slow down to 1.8% in 2023 from 2.1% in 2022. The United Kingdom is projected to witness a sharp slowdown in growth from 4.1% in 2022 to 0.4% in 2023.

The global financial body also predicted that growth in China will accelerate from 3.0% in 2022 to 5.2% in 2023.

The International Monetary Fund said that in the near term, signs of progress in the global economy are undeniable.

“The Covid-19 health crisis is officially over, and supply-chain disruptions have returned to pre-pandemic levels,” it said. “Economic activity in the first quarter of the year proved resilient, despite the challenging environment, amid surprisingly strong labor markets.”

On May 5, the World Health Organization had declared that the Covid-19 pandemic was no longer a public health emergency of international concern. This meant that countries could transition from emergency mode to managing the virus alongside other infectious diseases, the global health body had said.

The International Monetary Fund, however, said on Tuesday that there are growing signs of global economic activity losing momentum. It said that excess savings from pandemic-related transfers are “all but depleted” in the United States, while in China, economic recovery following the re-opening of its economy is showing signs of losing steam.