Question

What is the India's growth forecast for FY$19$, as per latest Fitch Ratings report "Global Economic Outlook"?

• A. $7.5\%$
• B. $7.3\%$
• C. $7.4\%$
• D. $7.6\%$

Answer 1

Answer: (C)

$7.4\%$

As per latest report Global Economic Outlook, Fitch Ratings has raised Indias growth forecast for 2018-19 to $7.4\%$ from $7.3\%$, but cited higher financing costs and rising oil prices as risks to growth. It also said that the rupee has been among the worst performers vis-a-vis Asian currencies this year. For FY20, it estimated the country to grow at $7.5\%$. However, higher financing costs (stemming from monetary tightening and higher market premiums) and rising oil prices should limit the upside to growth.