New Delhi: The United Nations has praised India and said that the Indian economy is expected to grow by 6.7% in the calendar year 2024. The World Economic Situation and Prospects as of mid-2023 released by the United Nations Department of Economic and Social Affairs (UNDESA) revealed this.
As per the report, India’s economy is the largest in the South Asian region, is expected to expand by 5.8% in 2023 and 6.7% in 2024 (calendar year basis), supported by resilient domestic demand. The report also said that higher interest rates and weaker external demand will continue to weigh on investment and exports in 2023.
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Inflation in India is expected to decelerate to 5.5% in 2023 as global commodity prices moderate and slower currency depreciation reduces imported inflation.
‘Rapid tightening of global financial conditions poses major risks for many developing countries and economies in transition. Rising interest rates, coupled with a shift in developed economies from quantitative easing to quantitative tightening, have exacerbated debt vulnerabilities and further constrained fiscal space,’ the report noted.
The UN agency revised upward its growth forecast for the world economy to 2.3%, from 1.9% estimated earlier for 2023, but pared down its estimate for 2024 to 2.5%, from 2.7% predicted earlier.
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