ADB lowers India’s economic growth forecast for 2022-23, explains rising inflation as the reason

ADB has revised India’s growth rate forecast to 7.2 for the fiscal year 2022-23. Earlier, an estimate of 7.5 percent growth was given in the economy during this period.

ADB slashes growth forecast

TV9 Hindi

TV9 Hindi | Edited By:

Jul 21, 2022 | 5:06 pm

The Asian Development Bank has reduced India’s growth rate forecast due to rising inflation. According to the data released today, ADB has revised India’s growth rate estimate to 7.2 for the financial year 2022-23. Earlier, the economy grew by 7.5 percent during this period. Growth estimate was given. According to ADB, high prices of petrol and diesel and rising food inflation are likely to affect the demand, due to which the pace of growth in the economy may be somewhat slow.

Why can there be a decline in growth?

According to a report by the bank, due to the prolongation of the Ukraine-Russia crisis, commodity prices may see an increase across the world. Due to high prices, the growth of developing countries of Asia will be negatively affected. Apart from this, any new wave of Kovid will have an impact on demand and recovery will be affected. According to the report, the high inflation rate will reduce the purchasing power of the customers and its effect will be recorded further. The bank said that although consumer confidence is slowly returning, due to higher than expected inflation rate, their purchasing power is also decreasing.

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