Downgraded to 7.5% and 7.2%, respectively… “The price is high”
Major economic institutions such as the World Bank (WB) are lowering India’s economic growth forecast for this year one by one.
According to the Times of India, an Indian daily, on the 8th (local time), the World Bank revised India’s GDP growth forecast for the fiscal year 2022-2023 (starting in April every year) from 8.0% to 7.5% the previous day.
In April, the World Bank lowered India’s economic growth forecast for the fiscal year 2022-2023 from 8.7% to 8.0%.
According to the World Bank, “This is 1.2 percentage points lower than the forecast for India’s annual economic growth presented in January.”
The World Bank explained that the forecast was due to high inflation, supply chain instability and geopolitical tensions.
The Reserve Bank of India (RBI) has also lowered its economic growth forecast for the 2022-2023 fiscal year from 7.8% to 7.2%.
According to the Daily Business Standard of India, the International Monetary Fund (IMF) recently downgraded its forecast for India’s economic growth rate this year from 9.0% to 8.2%, and is in the process of further lowering it.
India recorded an economic growth rate of 8.7% in the 2020-2021 fiscal year.
After peaking at 20.3% in the second quarter of last year, the quarterly growth rate has been declining to 8.5% (third quarter last year), 5.4% (last quarter last year), and 4.1% (first quarter this year).
Experts point out that the spread of COVID-19 omicron mutation earlier this year and the resulting contraction in economic activity, increased government fiscal spending and rising prices due to the Ukraine war, have recently become obstacles to economic growth.
In fact, India’s consumer price index rose to 7.79% in April, the highest in eight years.
Inflation in India has been steadily rising every month after bottoming out at 4.35% in September last year.
In April, fuel and electricity rates rose 10.8%, while food prices rose 8.4%.
The central bank of India (RBI) took an emergency response in early April, raising the policy repo rate, the base rate, by 0.4 percentage points from 4.0% to 4.4%.
/yunhap news
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