ADB projects Indias economy to grow by 7.5% in FY23

7 Apr 2022 , 10:35 AM

Asian Development Bank (ADB) on Wednesday projected a 7% collective growth for South Asian economies in 2022, with India growing by 7.5% in the current fiscal year before picking up to 8% the next year.

Releasing its flagship Asian Development Outlook (ADO) 2022, the Manila-based multi-lateral funding agency said the growth in South Asia is projected to slow to 7% in 2022, before picking up to 7.4% in 2023.

South Asian economies are expected to expand collectively by 7.0% in 2022 and 7.4% in 2023, with India?the subregions largest economy?expected to grow 7.5% this fiscal year and 8.0% next fiscal year, the agencys ADO report said.

ADB said developing Asias economies are forecast to grow 5.2% this year and 5.3% in 2023, thanks to a robust recovery in domestic demand and continued expansion in exports.

However, uncertainties stemming from the Russian invasion of Ukraine, the continuing coronavirus disease (COVID-19) pandemic, and tightening by the United States Federal Reserve pose risks to the outlook, ADB Outlook said.

Economies in developing Asia are starting to find their footing as they slowly emerge from the worst of the COVID-19 pandemic, said ADB Chief Economist Albert Park. However, geopolitical uncertainty and new COVID-19 outbreaks and virus variants could derail this momentum.

Governments in the region will need to remain vigilant and prepared to take steps to counter these risks. That includes making sure as many people as possible are fully vaccinated against COVID-19. Monetary authorities should also continue to monitor their inflation situation closely and not fall behind the curve, Park said.

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