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United Nations Downgrades India’s Growth Rate By 0.6%

United Nations

 

United Nations: Although the United Nations has downgraded India’s growth rate for the current fiscal year to 7 per cent, a cut of 0.6 percent from the projection made in January, it continues to be the world’s growth leader.

Despite the projected slowdown, “I would also point out that the forecast for India is among the highest in all of the countries, particularly the large economies,” Dawn Holland, the head of global economic monitoring, said on Tuesday during the release of the mid-year update to the World Economic Situation and Prospects report.

“Compared to global growth of 2.7 per cent, obviously this stands out among the very high rates of growth in the world,” she said. “We are still forecasting growth of 7 per cent in 2019 and 7.1 per cent in 2020.”
The report cut the projection for next fiscal year by 0.4 per cent from the 7.5 per cent made in January.

UN’s forecasts were lower than those made by the International Monetary Fund (IMF) and the Asian Development Bank (ADB) last month.
The IMF cut India’s growth projections for this year by 0.2 per cent from the 7.5 per cent made in January to 7.3 per cent. It projected next year’s growth at 7.5 per cent, though lower than the earlier 7.7 projection.

The Asian Development Bank said India’s growth rate would be 7.2 per cent this year and 7.3 per cent next year. Holland said that demonetisation does not continue to significantly impact the economy. (IANS)

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