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Moody’s cuts India’s 2018 growth forecast to 7.3% from 7.5%
News:
- Moody’s Investor Service has lowered India’s GDP forecast of 7.5% by 2018 to 7.3%.
Important facts:
- Other observations made by Moody’s Investor Service are:
- Indian economy is recovering in cyclical nature.
- Recovery of private investment cycle depends on recovery of twin balance sheet issue.
- G-20 countries will grow 3.3% in 2018 and 3.2% in 2019.
- Advanced economies will grow at a moderate 2.3% in 2018 and 2% in 2019.
- G-20 emerging markets will remain the growth drivers, at 5.2% in both 2018 and 2019, down from 5.3% in 2017.
- The GDP growth should be benefited from increase of rural consumption, higher minimum support price and a normal monsoon.
- Risk factor to GDP growth:
- Higher oil prices,
- Tighter financial conditions,
- Transition to Good and Service tax regime, and
- Trade conflict between India and China.
