Moody’s cuts 2022 growth forecast for the Indian economy to 8.8%


Moody’s cuts 2022 growth forecast for the Indian economy to 8.8%

New Deli, May 26 (KNN) Moody’s has lowered India’s growth forecast for 2022 from 9.1 percent to 8.8 percent.

However, it has maintained a 5.4 percent growth estimate for 2023.

The rating agency said high-frequency data suggests momentum from the fourth quarter of 2021 continued on strong reopening momentum in the first four months of this year.

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“Strong credit growth, a sharp increase in announced investment intentions by the corporate sector and a strong government budget allocation for investments indicate that the investment cycle is strengthening,” Moody’s said.

“However, increases in crude oil, food and fertilizer prices will weigh on household finances and spending in the coming months,” it said.

“Rise rates to prevent energy and food inflation from spreading more broadly will slow the momentum of the demand recovery. But unless global crude oil and food prices continue to rise, the economy appears strong enough to sustain solid growth momentum,” Moody’s said.KNN office)

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