Rating Agencies down India growth rate |
The International Monetary Fund on Tuesday joined a parade of multilateral institutions, rating firms and brokerages in cutting economic growth estimates for India, after Asia`s third-largest economy grew at its slowest pace in six years in the June quarter at 5%. IMF slashed its economic growth forecast for India to 6.1% for the current fiscal from its July projection of 7%. The World Bank on Sunday slashed its economic growth forecast for India to 6%, citing a broad-based and severe cyclical slowdown. Last week, Moody`s Investors Service lowered its 2019-20 growth forecast for India to 5.8% from 6.2% earlier, saying the economy was experiencing a pronounced slowdown partly due to long-lasting factors. The rating agency`s projection is the most pessimistic so far. The Indian economy is battling a severe demand slowdown and liquidity crunch that resulted in growth rate slowing to 5% in the three months ended June, while growth in private consumption expenditure slumped to an 18-quarter low of 3.1%. India`s industrial output contracted 1.1% in August, its worst show in 81 months, signaling a deepening of the economic downturn. Growth continues to be weakened by rising trade barriers and increasing geopolitical tensions.
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