UN agency lowers India’s GDP growth projections to 6.4%
New Delhi, May 19 (KNN) The UN has projected 6.4 per cent growth for India in 2022 which is slower as compared to previous year’s 8.8 per cent owing to higher inflationary pressures and uneven recovery of the labour market curbing private consumption and investment.
Despite Ukraine conflict shaking the global gross domestic product (GDP), India has maintained itself as one of the fastest-growing major economy despite of the Ukraine conflict shaking the global gross domestic product (GDP), said the UN report.
The UN Department of Economic and Social Affairs said in its World Economic Situation and Prospects (WESP) report released on Wednesday that the war in Ukraine has upended the fragile economic recovery from the pandemic, triggering a devastating humanitarian crisis in Europe, increasing food and commodity prices and globally exacerbating inflationary pressures.
"India, the largest economy in the region, is expected to grow by 6.4 per cent in 2022, well below the 8.8 per cent growth in 2021, as higher inflationary pressures and uneven recovery of the labour market will curb private consumption and investment," the report said.
However it has alerted Bangladesh, India, Pakistan, and Sri Lanka of higher prices and shortages of farming inputs including fertilisers as they are likely to persist in the region, negatively impacting the agricultural sector.
“This will probably result in weaker harvests and exert further upward pressures on food prices in the near term,” the report said. (KNN Bureau)