Elevated inflation, a slowing global economy and rising interest costs have led international Ratings Agency Fitch Ratings to slash India’s economic growth forecast for the current financial year to 7%, from its June estimation of 7.8%. Fitch also expects next financial year’s growth to slow down to 6.7%, compared to the previous estimate of 7.4%. Further, it expects retail inflation to stay at around 6.2 percent by end 2022 and the value of rupee to remain at 79 against the US dollar.
On the global front, Fitch Ratings expects world GDP to grow by 2.4% in 2022, and by just 1.7% in 2023. It also expects the eurozone and UK to enter recession later this year, while the US is expected to suffer a mild recession in mid-2023.
In August, this year, the RBI had revised India’s GDP downward from 7.8% to 7.2 %
