Amid rapid vaccination progress, India forecast to grow 6.5% in FY2022: UN

After the year 2021 saw 5.5% of growth in global output, it is projected to increase by 4% in 2022 and by 3.5% in 2023

January 17, 2022

India’s forecast is expected to grow at 6.5%, a decline from the 8.4% GDP estimate in the previous financial year.

Growth is expected to slow down to 5.9% in FY 2023.

India’s GDP is expected to increase by 6.7% in the current fiscal year.

Today, India is in a better position to navigate financial turbulence as compared after the 2008-2009 global financial crisis.

India is expected to grow at 6.5% in FY 2022, which is less than 1.9% when compared to the forecast made for the previous year. While the country’s economic growth is said to be on a “solid path” during the ongoing vaccination drives, coal shortages and high oil prices may act as a barrier and can slow down the economic activity in the near future, according to the United Nations (UN). 

India’s GDP forecast is to grow at 6.5% in the fiscal year 2022 which is a contraction from the growth of 8.4% in 2021, according to the flagship UN World Economic Situation and Prospects (WESP) 2022 report. Keeping this in mind, growth is expected to slow down to 5.9% in the coming year i.e. 2023, as per the report. 

While India still remains vulnerable partly due to high oil prices and coal shortages, it is in a better position to navigate financial turbulence as compared to its situation after the 2008-2009 global financial crisis. 

The report also said that the global economic recovery is witnessing a lot of headwinds amidst new covid waves of Covid-19 infections, continued labour market and supply-chain challenges as well as rising inflationary pressures. The current Omicron variant is expected to increase in the coming months which may give rise to economic fluctuations as well as have a toll on human lives, unleashing new waves of infections. 

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