Moody’s cuts India’s financial development projections to 7% for 2022

Moody’s on Friday slashed India’s GDP development projections for 2022 to 7 per cent from 7.7 per cent earlier as the worldwide slowdown and rising home rates of interest will dampen financial momentum.

This is the second time that Moody’s Investors Service has reduce India’s development estimates. In September, it had reduce projections for the present 12 months to 7.7 per cent from 8.8 per cent estimated in May.

“For India, the 2022 real GDP growth projections have been lowered to 7 per cent from 7.7 per cent. The downward revision assumes higher inflation, high-interest rates and slowing global growth will dampen economic momentum by more than we had previously expected,” the company mentioned in its Global Macro Outlook 2023-24.

Moody’s expects development to decelerate to 4.8 per cent in 2023 after which to rise to round 6.4 per cent in 2024.

It mentioned the worldwide economic system is on the verge of a downturn amid terribly excessive ranges of uncertainty amid persistent inflation, financial coverage tightening, fiscal challenges, geopolitical shifts and monetary market volatility.

Global development will sluggish in 2023 and stay sluggish in 2024. Still, a interval of relative stability might emerge by 2024 if governments and central banks handle to navigate their economies by the present challenges, Moody’s added.