Correct Answer : Option (A) - 5.9%
Goldman Sachs expects India's economic growth to slow to 5.9% in 2023, from an estimated 6.9% growth in 2022, as the boost from the post-COVID reopening fades and monetary tightening weighs on domestic demand.
* "We expect growth to be a tale of two halves in 2023, with a slowdown in the first half (due to dwindling reopening effects)," Santanu Sengupta, India economist at Goldman Sachs, said on Sunday(20th Nov 2022).
* India's growth in the seven months since March 2022, which Goldman Sachs considers the post-COVID reopening, was faster than most other emerging markets in the first seven months after they reopened, the U.S. investment bank said.
* "In the second half, we expect growth to re-accelerate as global growth recovers, the net export drag declines, and the investment cycle picks up," Sengupta said.
* The Reserve Bank of India (RBI), last week, pegged the domestic growth rate at 7% for 2022-23.
* Sengupta expects the government to continue its focus on capital spending and sees signs of the nascent investment recovery continuing, with conducive conditions helping the economy pick up in the second half.
Goldman Sachs expects headline inflation
to drop to 6.1% in 202
3, from 6.8% in 2022
, saying government intervention was likely to cap food prices and that core goods inflation had probably peaked..Source : Business Today
Published On : November 22, 2022
Category : Indian Economy