World Bank on Sunday reassesses India’s growth rate down to 6%. The fall in growth rate is blamed on broad-based deceleration in the initial quarters of this fiscal year.
The reassessment was cut short fro the previous rate of 6.9%. The report, which has been released ahead of the annual meeting of the World Bank with the International Monetary Fund, noted India’s economic growth decelerated for the second consecutive year. The world Bank citing the figures also pointed out that the current account deficit had widened to 2.1 % of the GDP in 2018-19 from the earlier 1.8 % which indicates a deepening trade imbalance.
According to the bank, the main sources of risk included external shocks that result in tighter global financing conditions, and new NBFC defaults triggering a fresh round of financial sector stress.
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