A report released on Thursday, March 24th, by the UN Conference on Trade and Development (UNCTAD) downgrades India’s GDP growth projection for FY 2022 from its earlier figure of 6.7% to 4.6% against the backdrop of the Ukraine war. The reasons attributed for this are higher oil prices, growing inflation, effects of economic sanctions on businesses, and tightening of monetary policies around the world as a response to rising prices.
The report states: “India, in particular, will face restraints on several fronts: energy access and prices, primary commodity bottlenecks, reflexes from trade sanctions, food inflation, tightening policies and financial instability,”
The report cut the projected global GDP growth rate to 2.6% from 3.6%. Russia, which is being targeted with a range of Western sanctions, is projected to enter a recession, and its growth outlook was slashed from 2.3% to -7.3%. The slowdown in economies will also be felt in Western Europe, Central, South and East Asia.
The full report ca be accessed here
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