ADB Keeps India’s Economic Growth Unchanged At 7%

Asian Development Bank (ADB) said that ven with the deteriorating outlook, developing Asia will grow more than other regions and suffer less inflation than most

Amid the global economic slowdown, Asian Development Bank (ADB) on Wednesday kept India’s economic growth outlook unchanged at 7 per cent for fiscal 2022-23. 

The bank’s 7 per cent growth projection for April 2022 to March 2023, unchanged from its September forecast as compared to 8.7 per cent gross domestic product (GDP) growth in 2021-22.

The bank also estimated a weaker-than-previously expected pace for developing Asia.

Talking about the major headwinds that continue to hamper recovery in developing Asia, it stated that recurrent lockdowns in China, the Russian invasion of Ukraine, and slowing global growth. 

Growth forecasts for the region are revised from 4.3 per cent to 4.2 per cent in 2022 and from 4.9 per cent to 4.6 per cent in 2023.

Regional inflation forecasts are revised down slightly for 2022 from 4.5 per cent to 4.4 per cent but upgraded for 2023 from 4.0 per cent to 4.2 per cent. 

“Even with the deteriorating outlook, developing Asia will grow more than other regions and suffer less inflation than most,” it added.

ADB Chief Economist, Albert Park said that Asia and the Pacific will continue to recover but worsening global conditions mean that the region is losing some steam as we head into the new year.”

“Governments will need to work together more closely to overcome tllingering challenges of COVID-19, combat effects of rising food and energy prices—especially on the poor and vulnerable—and ensure a sustainable, inclusive economic recovery,” added Park.