Fitch Cuts FY17 Growth Forecast to 6.9%

Fitch Ratings today lowered India's GDP growth forecast for the current fiscal to 6.9% from 7.4%, saying there will be “temporary disruptions“ to economic activity post demonetisation.It said economic activity will be hit in the October-December quarter because of the cash crunch created by withdrawal and replacement of 500 and 1000 rupee notes that accounted for 86% of the value of currency in circulation. The ratings agency al so revised GDP growth forecast for 2017-18 and 2018-19 lower to 7.7% from 8% earlier.
Regarding currency ban, it said consumers do not have the cash needed to complete purchases, and there have been reports of supply chains being disrupted and farmers unable to buy seeds and fertiliser for the sowing season. 

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