The World Economic Situation and Prospects report released by the United Nations has reposed its faith in the Indian economy. The report said that economy of India, the largest in the South Asian region, is expected to grow by 5.8 percent in 2023 and 6.7 percent in 2024. UN report further said higher interest rates and weaker external demand will continue to weigh on investment and exports this year for the country.
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The UN report said that India remains a bright spot amid global economic uncertainty. It said that inflation in India is expected to decelerate to 5.5 percent in 2023 with the moderation of global commodity prices and slower currency depreciation.
The estimates for India’s economic growth in the mid-year assessment remained unchanged from the projections made in the World Economic Situation and Prospects 2023 report launched in January this year.
The flagship report issued in January had said that India’s GDP is projected to moderate to 5.8 per cent in 2023 as higher interest rates and global economic slowdown weigh on investment and exports.
India’s economic growth is expected to remain “strong” even as prospects for other South Asian nations “are more challenging.” India is projected to grow at 6.7 per cent in 2024, the fastest-growing major economy in the world, the flagship report had said.
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