World Bank cuts India's GDP forecast to 7.5% for FY23
Published On: Wednesday, June 8, 2022 | By: Team KnowMyStock
The World Bank on Tuesday cut India's economic growth forecast for the current fiscal to 7.5% from 8 percent as rising inflation, supply chain disruptions and geopolitical tensions taper recovery. This is the second time that the World Bank has revised its GDP growth forecast for the country in the current fiscal. In April, it had cut the forecast from 8.7 percent to 8 percent and is now at 7.5 percent. "In India, growth is forecast to edge down to 7.5% in the fiscal year 2022/23, with headwinds from rising inflation, supply chain disruptions, and geopolitical tensions offsetting buoyancy in the recovery of services consumption from the pandemic," the World Bank said in its latest issue of the Global Economic Prospects. The World Bank said that growth will be supported by fixed investment undertaken by the private sector and by the government, which has introduced incentives and reforms to improve the business climate.
"Growth is expected to slow further to 7.1 percent in 2023-24 back towards its longer-run potential," it added.A rise in prices across all items from fuel to vegetables and cooking oil pushed WPI or wholesale price-based inflation to a record high of 15.08 per cent in April and retail inflation to a near eight-year high of 7.79%
Last month, Moody's Investors Service lowered the calendar 2022 growth forecast for India to 8.8% from 9.1% citing the rise in crude oil, food, and fertilizer prices weighing on household finances and spending.
Tags: RBI inflation GDPforecast
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