Muristek
New Delhi, May 26
Moody's Investors Service on Thursday slashed India's economic growth projection to 8.8% for 2022 from 9.1% earlier, citing high inflation. In its update to Global Macro Outlook 2022-23, Moody's said high-frequency data suggests the growth momentum from December quarter 2021 carried through into the first four months this year.
However, the rise in crude oil, food and fertiliser prices will weigh on household finances and spending in the months ahead. Rate hike to prevent energy and food inflation from becoming more generalised will slow the demand recovery's momentum, it said.
"We have lowered our calendar-year 2022 growth forecast for India to 8.8% from our March forecast of 9.1%, while maintaining our 2023 growth forecast at 5.4%," Moody's said.
Strong credit growth, a large increase in investment intentions announced by the corporate sector, and a high budget allocation to capital spending by the government indicate the investment cycle is strengthening.
"But unless global crude oil and food prices rise further, the economy seems strong enough to maintain solid growth momentum," Moody's added. For 2022 and 2023, it projected inflation to be around 6.8% and 5.2%, respectively. — PTI
SBI projects FY22 expansion at 8.5%
SBI economists have pegged Q4 (January-March) growth at 2.7% and the FY22 growth at 8.5% Official data on the economy is expected to be released on May 31