lpbrm94c gdp 650x400 31 August 20

That growth rate was slightly lower than the estimated 6.4 percent in 2022, the report said.

United Nations:

India’s GDP is expected to slow to 5.8% in 2023 as rising interest rates and a global slowdown weigh on investment and exports, the United Nations said on Wednesday, noting that the country’s economic growth is expected to remain “robust” even with a brighter outlook for other countries. South Asian countries are “more challenging”.

The World Economic Situation and Prospects 2023 report says world output growth is projected to slow to 1.9 percent in 2023 from an estimated 3 percent in 2022, marking one of the slowest growth rates in recent decades as “a series of In 2022, the COVID-19 pandemic, the war in Ukraine and the resulting food and energy crises, soaring inflation, a debt crunch, and the climate emergency compounded the shocks that hammered the world economy. “

In South Asia, economic prospects have deteriorated significantly due to high food and energy prices, monetary tightening and fiscal vulnerabilities, said the report, produced by the United Nations Department of Economic and Social Affairs (UN DESA). Average GDP growth is expected to slow from 5.6% in 2022 to 4.8% in 2023.

“Growth in is expected to remain robust at 5.8 percent, albeit slightly below the estimated 6.4 percent in 2022, as rising interest rates and a global slowdown weigh on investment and exports,” it said.

The UN report said the “prospects are more challenging” for other economies in the South Asian region. Bangladesh, Pakistan and Sri Lanka seek financial assistance from the International Monetary Fund (IMF) in 2022.

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While India’s economic growth is expected to slow to 5.8 percent in 2023, with higher interest rates weighing on investment and slower global growth weakening exports, the report estimates the country’s fastest growth rate of 6.7 percent in 2024 – Growth of major world economies.

The report presents a bleak and uncertain picture of the near-term outlook for the global economy. Global growth is projected to pick up modestly to 2.7% in 2024 as some headwinds begin to recede.

However, much depends on the pace and sequence of further monetary tightening, the course and aftermath of the war in Ukraine, and the potential for further supply chain disruptions.

UN Secretary-General António Guterres said: “Now is not the time for short-term thinking or knee-jerk austerity, which can exacerbate inequality, increase suffering and potentially make the Sustainable Development Goals even more out of reach. These unprecedented times call for action. Unprecedented action.”

He added: “This action includes a transformative SDG stimulus package that has emerged through the collective and joint efforts of all stakeholders.”

is expected to grow 4.8 percent in 2023 and 4.5 percent in 2024, while the U.S. is projected to grow 0.4 percent this year and 1.7 percent in 2024.

Russia’s trade direction has shifted markedly since the start of the war, the report said, adding that while Russian oil has been diverted to Asia and sold at a discount, exports in 2022 will likely fall as trade with China, and Turkey surges. The total value has increased.

Russia’s current account surplus for the first three quarters of 2022 will be $198 billion, compared to $122 billion for the whole of 2021.

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Amid high inflation, aggressive monetary tightening and heightened uncertainty, the current downturn has slowed economic recovery from the COVID-19 crisis, threatening some developed and developing into recession in 2023.

In 2022, the growth momentum of developed economies such as the United States and the European Union will weaken significantly, which will adversely affect other global economies through various channels.

In India, annual inflation is estimated at 7.1% in 2022, above the central bank’s medium-term inflation target range of 2% to 6%. Inflation in is expected to ease to 5.5% in 2023 as moderate global prices and moderating currency depreciation ease imported inflation.

Employment recovery in most developing countries slows in 2022 and continues to face considerable job slack. The disproportionate loss of employment for women in the early days of the pandemic has yet to be fully reversed, with improvements largely coming from a recovery in informal work, the report said.

The recovery in labor markets across the region has been uneven. Among large economies, India’s unemployment rate fell to a four-year low of 6.4% as the economy added jobs in both urban and rural areas in 2022, the report said.

“In India, the unemployment rate in 2022 has fallen to pre-pandemic levels through strengthening urban and rural employment. But youth employment remains below pre-pandemic levels, especially given the severe impact of the pandemic on female-preferred economic sectors is the employment rate cluster for young women,” it said.

The report calls on governments to avoid fiscal austerity, which stifles growth and disproportionately affects the most vulnerable, hampers progress on gender equality and hampers development prospects across generations. It recommends reallocating and reprioritizing public spending through direct policy intervention, which would create jobs and revive growth. It said this would require strengthening social protection systems, ensuring ongoing support through targeted temporary subsidies, cash transfers and discounts on utility bills, complemented by reductions in excise or customs duties.

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(Aside from the title, this story is unedited by NDTV staff and published via a syndicated feed.)

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