There are only a few days left for India's Budget-2023, but earlier on Wednesday, the United Nations predicted that India's GDP could be 5.8 percent in FY 2023 as high interest rates and global economic slowdown hampered investment and exports. The pressure is on.
Also, the United Nations expects the country's economic growth to remain strong, while the outlook for other South Asian countries is more challenging. The Global Economic Situation and Prospects-2023 report states that global output growth is projected to decline from an estimated three per cent in 2022 to 1.9 per cent in 2023, one of the lowest growth rates in recent decades.
The report attributed the situation arising out of the Russia-Ukraine war to the Corona epidemic and the situation arising out of the Russia-Ukraine war, which led to food and energy crisis and increased inflation. The report said growth in India is expected to remain at 5.8 per cent, though slightly lower than the projected 6.4 per cent in 2022, as higher interest rates and a global slowdown put pressure on investment and exports.
Indian economy will grow rapidly in 2024
The UN report said the outlook for other economies in the South Asia region is more challenging. Bangladesh, Pakistan and Sri Lanka sought financial assistance from the International Monetary Fund in 2022. While economic growth in India is projected to moderate to 5.8 percent in calendar year 2023, with exports weakening due to higher interest rates on investment and slower global growth, the report estimates the country will grow at 6.7 percent in 2024. India's inflation is expected to come down to 5.5 percent in 2023.