Tuesday, December 13, 2016

ADB slashes India’s 2016 growth estimate to 7%

 

The Asian Development Bank (ADB) has trimmed its 2016 growth estimate for India to 7% from the previous 7.4% on account of demonetisation, weak investment and agricultural slowdown.

But India’s growth forecast for 2017 was kept at 7.8%. “Economic growth in developing Asia remains broadly stable, but a slight slowdown in India has trimmed the region’s growth outlook for 2016,” said the new ADB report.

“Economic growth in developing Asia remains broadly stable, but a slight slowdown in India has trimmed the region’s growth outlook for 2016,” the new ADB report said. In a supplement to its Asian Development Outlook 2016 Update report, ADB has downgraded 2016 growth for Asia to 5.6%, below its previous projection of 5.7 per cent. For 2017, growth remains unchanged at 5.7%. “India’s tempered growth projection to 7% from the previously forecast 7.4% in 2016 is due to weak investments, a slowdown in the country’s agriculture sector, and lack of available cash due to the government’s decision to ban high-denomination banknotes,” ADB said. 

 

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