India’s economic growth to overtake China, Asia to push global growth: OECD

New Delhi, June 9 (KNN) India’s economic growth is expected to surpass that of China this year and next as Asia maintains its bright spot in global growth, according to the Organization for Economic Cooperation and Development (OECD).

In its latest global economic outlook report, the OECD predicted India, China and Indonesia would top gross domestic product projections for 2023 and 2024. Overall, the organization expects global growth of 2.7 per cent this year.

That would mark the second-lowest annual rate since the global financial crisis, except for the 2020 Covid pandemic year, it said.

“Falling energy prices and headline inflation, easing supply bottlenecks and the reopening of China’s economy, coupled with strong employment and relatively resilient household finances, all contribute to a projected recovery,” OECD Chief Economist Clare Lombardelli said.

“Nevertheless, the recovery will be weak by past standards,” she said, adding that monetary policymakers will “need to navigate a difficult road.”

The OECD expects India to grow 6% in 2023; China to grow 5.4%, Indonesia to grow 4.7%.

India’s 2022 full-year growth momentum is expected to continue into this year, the group said, after higher-than-expected agriculture output and strong government spending.

The OECD added that looser monetary policy in the second half of next year will help household spending momentum return. It also expects India’s central bank to turn to mild interest rate cuts starting in the middle of 2024.  (KNN Bureau)