new Delhi . American brokerage company Morgan Stanley has slashed India’s growth forecast by half a percentage point to 7.9 percent for the fiscal year 2022-23. Along with this, Morgan Stanley has increased the forecast for retail inflation to 6 percent. It estimates that the country’s current account deficit (CAD) will increase to three percent of gross domestic product (GDP).
The Morgan Stanley report said, “We anticipate that the cycle of recovery will continue, but it will be softer than our previous forecast. The current geopolitical tensions will increase external risks and push the economy towards stagnant inflation.
external risks will increase
In stagnant inflation, the growth rate of the economy decreases, but with it inflation increases. The report said, “India is being affected by three things….higher prices of crude oil and other commodities, trade and other tight financial conditions etc., which are affecting the business and investment sentiments.”
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raised inflation forecasts
Morgan Stanley said, “We are reducing our growth forecast for 2022-23 by half a percentage point to 7.9 percent due to higher crude oil prices.” Apart from this, the estimate of inflation based on the Consumer Price Index is being increased to 6 percent. The current account deficit may widen to three percent of GDP, which will be its 10-year high.
It has been said in the report that India meets 85 percent of its crude oil requirement from imports. International crude oil prices have come down slightly after reaching a 14-year high of $140 a barrel at one time. India will have to pay more for crude oil. This will increase inflationary pressure.
Tags: business news in hindi, Economy, Indian economy, rural economy, Sixth largest economy
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