Morgan Stanley on India’s GDP Growth Forecast for FY23 & FY24 & Major Drivers

  • Investing.com
  • Economy News
Morgan Stanley on India’s GDP Growth Forecast for FY23 & FY24 & Major Drivers
Credit: © Reuters.

By Malvika Gurung

Investing.com -- Amid the ongoing slowdown in global growth and higher crude oil prices, global brokerage Morgan Stanley (NYSE: MS ) has slashed India’s GDP growth projection from 7.9% earlier to 7.6% for FY23, and from 7% to 6.7% in FY24.

Major factors impacting the GDP growth include adverse terms of trade shock, business confidence weighing high from geopolitical tensions and a slowdown in global economic growth.

However, the brokerage firm has clarified that despite cyclical headwinds, the economy is expected to rise over pre-pandemic rates in 2022 and 2023, led by the government's supply-side response and the reopening vibrancy to help counter the downside.

The brokerage also expects the macro stability indicators to worsen.

It sees higher inflation, stricter financial conditions, weak consumer demand, and a delay in recovery of capex as key channels of impact, while pegs inflation and the current account deficit to deteriorate.

“We expect broad-based price pressures, which will keep CPI inflation above the 6% mark through October 2022, with average CPI expected to be 6.5% for FY23. Similarly, reflecting the commodity price pressures, we expect the current account deficit to widen to a 10-year high of 3.3% of GDP in FY23," stated the report.

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or

100
  • Ali Rizvi @Ali Rizvi
    aaj pata chalega kitna pheku hai
    Like 1
    • Nitin Kumar @Nitin Kumar
      Kaun tera Baap? 🤣
      Like 6
    • Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

      Error: File type not supported

      Drop an image here or

      100
  • Dhananjay Chaudhari @Dhananjay Chaudhari
    Morgan stanly feku hai…..
    Like 4
  • Dhananjay Chaudhari @Dhananjay Chaudhari
    Zut bolta hai sala
    Like 2

Related Articles