New Delhi, September 25
The Asian Development Bank (ADB) today sharply lowered India’s growth forecast from 7.2% to 6.5% for the current fiscal, though has it indicated that the country will grow faster than China.
The multi-lateral lending agency in its Asian Development Outlook (ADO) Update for 2019 cut the growth projection for India, which recorded an over six-year low growth of 5% in April-June quarter this fiscal.
“India’s growth forecast for fiscal year 2019 is lowered to 6.5% after growth slowed markedly to 5% in the first quarter, April-June. Abrupt declines in manufacturing and investment reflect uncertainty ahead of General Election, subdued lending by banks and other financial institutions, stress in the rural economy, and a weakening external outlook,” the agency said.
However, India is expected to rebound to 7.2% growth in fiscal 2021 and join most other sub-regional countries in performing at or near their ADO 2019 growth forecasts for next year, it added.
The Manila-headquartered funding agency had projected India’s economy to expand at 7.2% in its ADO for 2019-20 released earlier in April this year and cut it down to 7% in the supplement to the ADO in July.
As regards China, it has projected that growth will slip from 6.6% last year to 6.2% in 2019, and 6% in 2020 — below previous projections — with increased government spending and a strong housing market partly offsetting the impact of the trade dispute with the US and sluggish manufacturing investment.
“In Hong Kong, China, recent political tensions, spillover from the trade conflict, and the global electronics downturn will slow growth in 2019 and 2020 well below ADO 2019 projections,” it said further. — PTI
Asian Development Outlook
The Manila-headquartered funding agency had projected India’s economy to expand at 7.2% in its Asian Development Outlook for 2019-20 released earlier in April this year and cut it down to 7% in July
As regards China, ADB has projected that growth will slip from 6.6% last year to 6.2% in 2019, and 6% in 2020 — below previous projections — with increased government spending and a strong housing market partly offsetting the impact of the trade dispute with the US and sluggish manufacturing investment
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