23 C
Saturday, April 20, 2024

India’s GDP growth to slow down in 2023-24: JP Morgan

Must Read

Batori24 Bureau
Batori24 Bureau
Batori24 is a Vernacular based Assamese news portal based in Guwahati Assam. We are a dedicated news channel covering news and stories across the globe with special reference to Assam, north-east along with National and International news.

In a report, JP Morgan predicted that India’s real GDP growth in 2022–2023 would be close to 7%. However, a sharp global slowdown is anticipated to cause a slowdown in economic growth in 2023–2024. According to the report, given the high level of uncertainty in the world, slowing growth, tightening monetary conditions, and low manufacturing utilization rate, a broader private investment cycle would also take time to fructify.

Also Read: EctoLife, the world’s ‘first artificial womb facility’, incubate up to 30,000 lab-grown children per year

Despite the excellent performance, production is still about 7% below potential pre-pandemic trends, reflecting both the pandemic’s effects and the unfavorable effects of higher commodity prices in 2022 on trading conditions.

But compared to recent years, the balance sheets of businesses and banks seem to be in much better shape. Banks are eager to lend as corporate debt to GDP is at its lowest level since 2006. It will take time for a broader private investment cycle to bear fruit, though, given the increased level of global uncertainty, slowing growth, tightening financial conditions, and manufacturing capacity utilization that is still below 80%. A report was added. This year, the current account deficit (CAD) is anticipated to be greater than 3% of GDP. In 2023, a crucial policy objective should be bringing CAD back to manageable levels.

Once more, ongoing high-level fiscal consolidation is the key to CAD compression. The center aims to reduce the budget deficit to 6.4% of GDP this year and to 0.5% of GDP the following year. By lowering the deficit while keeping capital investment at a high level, the Fiscal Balance Act will achieve its goal.

As growth slows and input price pressures ease, inflation is predicted to gradually decrease over the years 2023–2024. During this time, it is expected to remain stubborn.

The MPC is close to a moratorium and risks an eventual 25 basis point rate hike at its February review as a result of the RBI raising interest rates by approximately 300 basis points in 2022 and liquidity tightening, the report adds.

The sharp global slowdown that is weighing on exports and the ongoing normalisation of domestic fiscal and monetary policies, according to JP Morgan, will cause growth to slow in 2023–2024.


- Advertisement -
- Advertisement -

Latest News

Bhupen Borah heads to Jorhat, to face police Inquiry amid Political turmoil

Police in Jorhat have summoned Assam Congress chairman Bhupen Borah to appear before them on January 31 in relation to a case involving the Bharat Jodo Nyay Yatra, which is suspected of deviating from its approved route in the district.
- Advertisement -

More Articles Like This

- Advertisement -