Moody’s cuts ’19-20 growth es­ti­mate

The Times of India (New Delhi edition) - - Times Global -

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.

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