Chennai: As higher interest rates and a global slowdown weigh in on investment and exports, India is expected to grow at 5.8 per cent in 2023 and 6.7 per cent in 2024.
“The unemployment rate dropped to a four-year low of 6.4 per cent in India,” finds the UN Department of Economic and Social Affairs.
According to the United Nations’ agency, “the global economic growth is projected to slow to 1.9 per cent in 2023, sharply lower than the 3 per cent in 2022. Global growth is forecast to moderately pick up to 2.7 per cent in 2024. Similarly, in South Asia, the economic outlook has significantly deteriorated due to high food and energy prices, monetary tightening and fiscal vulnerabilities and average GDP growth is projected to moderate from 5.6 per cent in 2022 to 4.8 per cent in 2023.”
Growth in India is expected to remain strong at 5.8 per cent, albeit slightly lower than the estimated 6.4 per cent in 2022, as higher interest rates and a global slowdown weigh on investment and exports. GDP growth could move up to 6.7 per cent in 2024.
In India, annual inflation is estimated at 7.1 per cent in 2022, exceeding the 2 to 6 per cent medium-term inflation target band set by the central bank.
India’s inflation is expected to decelerate to 5.5 per cent in 2023 as global commodity prices moderate and slower currency depreciation eases imported inflation.
Among large economies, it said the jobless rate dropped to a four-year low of 6.4 per cent in India, as the economy added jobs both in urban and rural areas in 2022. But youth employment remained below pre-pandemic levels. Employment remain-ed low particularly among young women, given the pandemic’s severe impa-cts on economic sectors where women tend to cluster.
It also estimated that in about a dozen countries spent more than 20 per cent of revenues on interest payments in 2022.
