Moody’s lowers India’s 2022 growth projection to 8.8 pct

NEW DELHI, May 26– Global credit rating agency Moody’s on Thursday slashed India’s economic growth projection to 8.8 percent for 2022 from its earlier projection of 9.1 percent, citing high inflation as the main reason. It said that the growth momentum at the end of 2021 had carried through into the first four months of this year. Moody’s added that it has…

NEW DELHI, May 26 (Xinhua) — Global credit rating agency Moody’s on Thursday slashed India’s economic growth projection to 8.8 percent for 2022 from its earlier projection of 9.1 percent, citing high inflation as the main reason.

It said that the growth momentum at the end of 2021 had carried through into the first four months of this year.

“However, the rise in crude oil, food and fertilizer prices will weigh on household finances and spending in the months ahead. Rate hike to prevent energy and food inflation from becoming more generalized will slow the demand recovery’s momentum,” it said in a statement.

Moody’s added that it has maintained the 2023 growth forecasts for India at 5.4 percent.

It further stated that strong credit growth, a large increase in investment intentions announced by the corporate sector, and a high budget allocation to capital spending by the federal government indicate that the investment cycle “is strengthening.” Enditem

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