17.7.12

IMF lowers India's growth rate

The International Monetary Fund (IMF) on Monday cut India’s growth forecast to 6.1% for 2012, citing the slowing global economy. In its update to the World Economic Outlook, the IMF also lowered the growth estimate for India to 6.5% for 2013. In its April outlook, it had forecast growth at 6.8% for 2012 and 7.2% for 2013. 

“In the past three months, the global recovery, which was not strong to start with, has shown signs of further weakness. Financial market and sovereign stress in the euro area periphery have ratcheted up, close to end-2011 levels. Growth in a number of major emerging market economies has been lower than forecast,” the IMF said in its update.
Several global agencies as well economists have slashed India’s growth forecast for FY13, citing lack of reforms and high interest rates. 

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