Nomura cuts India 2023 GDP forecast to 4.7%
Published On: Wednesday, July 13, 2022 | By: Team KnowMyStock
Analysts at Nomura have cut its 2023 forecast for economic growth in India, as measured by the gross domestic product (GDP), to 4.7 percent from its earlier projection of 5.4 percent amid worries of recession picking up across the world in an inflationary environment as it expects growth to slow down over the next year. “We see rising medium-term growth headwinds from higher inflation, monetary policy tightening, dormant private capex growth and, most importantly, global growth slowdown,” Consequently, we lowered our 2023 GDP growth projection from 5.4% to 4.7%," the firm said in a note co-authored by Aurodeep Nandi and Sonal Varma. The Indian economy has been racing above its pre-pandemic level, led by a sharp recovery in the services sector, and supported by the lagged effects of easy financial conditions, a public capex push, and a rise in real bank credit growth and the improvement in growth has been broad-based across consumption, investment, industry and the external sector.
With high crude oil and commodity prices as well as service costs threatening to keep inflation elevated, India’s central bank has quickened its monetary policy normalization over the last couple of months and is expected to raise policy rates again in early August.Central banks across the world are now expected to hike rates aggressively in a bid to control inflation, even at the cost of sacrificing growth.
Tags: #GDP #Nomura IndiaGDP #forecast
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