Asian Development Bank cuts India’s GDP growth forecast to 7%


India’s economy grew 13.5% year-on-year in the first quarter of 2022-23, reflecting strong growth in services

India’s economy grew 13.5% year-on-year in the first quarter of 2022-23, reflecting strong growth in services

The Asian Development Bank (ADB) has slashed India’s economic growth projection for 2022-23 to 7% from 7.2% earlierciting higher than expected inflation and monetary tightening.

India’s economy grew 13.5% year-on-year in the first quarter of 2022-23, reflecting strong growth in services, ADB said in a supplement to its flagship ADO report on Wednesday.

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“However, GDP growth is revised down from ADO 2022’s forecasts to 7% for FY2022 (ending in March 2023) and 7.2% for FY2023 (ending in March 2024) as price pressures are expected to adversely impact domestic consumption, and sluggish global demand and elevated oil prices will likely be a drag on net exports,” it said.

The ADO expects the Chinese economy to expand by 3.3% in 2022 rather than the 5% forecast earlier. Lockdowns from the zero-covid strategyproblems in the property sector, and weaker external demand continue to weigh on the economic activity in China, said the report.



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