According to U.N report, the Indian economy will grow at 7.2% in 2018 and accelerate to 7.4% in the following year as a result of robust private consumption, public investment and structural reforms, but it still faces the risk of sudden capital withdrawal on account of monetary policy normalization in developed countries. At the global level, growth is expected to remain steady at 3% in 2018 and 2019, it said.
The report also forecast that inflation in India will be 4.5% in 2018 and 4.8% in 2019, slightly above the Reserve Bank of India’s (RBI) medium-term consumer price index- based (CPI-based) inflation target of 4%.
For South Asia, the UN report expects regional gross domestic product (GDP) growth to be strengthening to 6.5 percent in 2018 and further to 7 percent in 2019, following an estimated economic expansion of 6.3 percent this calendar.
Report name: United Nations World Economic Situation and Prospects 2018 report
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