Friday, March 24, 2023
HomeEconomyADB cuts India’s growth outlook for 2019 as global risks mount

ADB cuts India’s growth outlook for 2019 as global risks mount

India’s GDP will probably rise 7.2% this year, down from December forecast of 7.6%, according to ADB’s latest Asian Development Outlook report.

Text Size:

Manila: The Asian Development Bank downgraded economic growth forecasts for India and Southeast Asia for 2019 as global risks from trade tensions to Brexit mount.

Gross domestic product in India will probably increase 7.2 percent this year, down from a December forecast of 7.6 percent, according to the ADB’s latest Asian Development Outlook report. Southeast Asia’s growth estimate was lowered by 0.2 percentage point to 4.9 percent.

A drawn-out or deteriorating trade conflict between China and the U.S. could damp investment, the ADB said, while the U.K.’s potential chaotic exit from the European Union and financial market volatility comes with additional risks.

“With various uncertainties stemming from U.S. fiscal policy and a possible disorderly Brexit, growth in the advanced economies could turn out slower than expected, undermining the outlook” for China and other economies in the region, Yasuyuki Sawada, the ADB’s chief economist, said in the report.

Key Insights

China’s growth forecast for 2019 maintained at 6.3 percent, with economy seen slowing to 6.1 percent in 2020 While the risk of sharp increases in U.S. interest rates seem to have eased, “policy makers must remain vigilant in these uncertain times,” Sawada said The biggest economic blocs in developing Asia will see softer consumer price growth this year than previously forecast Exchange rate volatility can be problematic, particularly for nations that rely on dollar debt. Suitable monetary tools, regional dialogue and deeper domestic markets must be considered to cushion impact of tighter external funding conditions.-Bloomberg

Also read: RBI delays implementing new accounting rules, preventing pile-up of bad bank loans


Subscribe to our channels on YouTube & Telegram

Support Our Journalism

India needs fair, non-hyphenated and questioning journalism, packed with on-ground reporting. ThePrint – with exceptional reporters, columnists and editors – is doing just that.

Sustaining this needs support from wonderful readers like you.

Whether you live in India or overseas, you can take a paid subscription by clicking here.

Support Our Journalism

Most Popular