Question

What is the India's GDP growth forecast for $2018$, as per latest Moody's Investors Service report "Global Macro Outlook: $2018-19$"?

• A. $7.5\%$
• B. $7.3\%$
• C. $7.4\%$
• D. $7.2\%$

Answer 1

The correct option is B $7.3\%$

The latest report of Moodys Investors Service has cut Indias GDP growth forecast to $7.3\%$ in 2018 from the previous estimate of $7.5\%$ due to higher oil prices and tighter financial conditions. However, Moodys maintained its 2019 growth forecast at $7.5\%$.

The report Global Macro Outlook: 2018-19 stated that the Indian economy is in cyclical recovery led by both investment and consumption. However, higher oil prices and tighter financial conditions will weigh on the pace of acceleration. The private investment cycle will continue to make a gradual recovery, as twin balance-sheet issues impaired assets at banks and corporates slowly get addressed through deleveraging and the application of the Insolvency and Bankruptcy Code.