Moody’s cuts ’19-20 growth estimate
New Delhi: Global ratings agency Moody’s Investors Service on Thursday slashed India’s 2019-20 GDP growth forecast to 5.8% from 6.8%, citing multiple factors, including a slowdown in investment and consumption.
This is the sharpest cut in growth estimates by the agency. The RBI slashed its GDP growth estimate for 2019-20 to 6.1% from 6.8%, also its sharpest reduction in nearly seven years. Several other multilateral agencies have also cut the country’s growth projection against the backdrop of the slowdown that has gripped Asia’s third-largest economy. Growth slowed to an over six-year low of 5% in the AprilJune, prompting the government to unveil a series of measures to lift economic activity and push expansion.
Given India’s already weak fiscal position, this would weigh on the sovereign credit profile, the agency said in a report.