Asian Development Bank cuts growth forecast to 7 per cent
New Delhi: Forecasting strong but moderating growth over 2019 and 2020 in developing Asia, including India, the Asian Development Bank (ADB) on Thursday cut the growth forecast for India to 7 per cent from 7.2 per cent for the current fiscal. The ADB, however, maintained that India would continue to remain the fastest growing major economy, ahead of China.
“The lowering growth in India is due to moderation in growth prospects for the advanced economies which could adversely affect tradable services. However, developing Asia will maintain strong but moderating growth over 2019 and 2020, as supportive domestic demand counteracts an environment of global trade tensions,” said a new ADB report.
In its update, Asian Development Outlook (ADO) 2019, the development bank said China would grow at 6.3 per cent in 2019, and slip further to 6.1 per cent in 2020, mainly on account of continuing trade war with the US.