Moody’s pegs India's GDP growth at 5% this year

India Infoline News Service | Mumbai |

However, Moody's said India’s growth estimates are still way lower than the levels seen before global crisis

Moody's on Wednesday said India's GDP (gross domestic product) will grow by 5% this year and accelerate further in 2015.
“The growth outlook is more robust for India and Indonesia. For both countries, we forecast GDP growth of around 5 per cent this year, rising to around 5.5-6 per cent in 2015,” Moody’s said in its report ‘Global Macro Outlook 2014-15: Summer Lull: Subdued, But Less Risky Global Growth Likely’.
However, Moody's said India’s growth estimates are still way lower than the levels seen before global crisis.
“For India in particular, the projected growth rates are still significantly below pre-crisis and well short of the new Government’s target to raise growth to 7-8 per cent by 2017-18,” the report said.
Moody’s also said that India and Indonesia would see “more resilient GDP growth”.
Moody’s further said high inflation and interest rates as well as a deceleration in exports are likely to weigh on growth in emerging markets.
“In contrast, growth in advanced economies should pick up in 2015 driven by higher business investment, though ongoing deleveraging in the euro area and a preference for holding large cash reserves by companies in the US and the UK will curtail the pace of recovery,” it said.
According to the report, improvement in global growth is likely to be visible in 2015, with 2014 expected to be another below-average year.
“For the G-20 economies, GDP growth is forecast at around 2.8 per cent in 2014 (broadly unchanged from 2013) before rising to 3.2 per cent in 2015,” it added.
 

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