India’s growth rate to accelerate to 7.2% in 2018, 7.4% in 2019: UN | Current Affairs, Current Affairs 2017

India’s growth rate to accelerate to 7.2% in 2018, 7.4% in 2019: UN

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Overcoming the slowdown from demonetisation, the growth rate of India’s economy is projected to accelerate from this year’s 6.7 percent to 7.2 percent next year and 7.4 percent in 2019 making it again the world’s fastest-growing major economy, the UN said on Monday.
“Despite the slowdown observed in early 2017 and the lingering effects from the demonetization policy, the outlook for India remains largely positive, underpinned by robust private consumption and public investment as well as ongoing structural reforms,” according to the World Economic Situation and Prospects 2018 report.
However, the 7.2 percent growth rate projected for India next year in the latest report is lower than the mid-year update’s projection made by the UN in May of 7.9 percent.
China’s economic growth for this year was 6.8 percent, according to the report, putting it slightly ahead of India. But the growth projections for China is 6.5 percent next year and 6.3 percent in 2019
Releasing the report, Under Secretary-General for Economic and Social Affairs, Liu Zhenmin, said: “The upturn in global growth is a welcome sign of a healthier economy.”
The report warned that for India “the anaemic performance of private investment remains a key macroeconomic concern.”
India’s fiscal deficit has declined visibly, and it is expected to narrow further to 3.2 percent of GDP in 2018.

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