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United Nations (UN) in its latest report has said that India’s economy is expected to grow by 6.7 per cent in the calendar year 2024, supported by resilient domestic demand. It said inflation in India is expected to decelerate to 5.5 per cent in 2023 as global commodity prices moderate and slower currency depreciation reduces imported inflation. However, it said higher interest rates and weaker external demand will continue to weigh on investment and exports in 2023.

The report stated that the estimates for India’s economic growth in the mid-year assessment remained unchanged from the projections made in the World Economic Situation and Prospects 2023 report launched in January this year.  The flagship report issued in January had said that India’s GDP is projected to moderate to 5.8 per cent in 2023 as higher interest rates and global economic slowdown weigh on investment and exports. India’s economic growth is expected to remain strong even as prospects for other South Asian nations ‘are more challenging’. 

According to the report, the world economy is now projected to grow by 2.3 per cent in 2023 (+0.4 percentage points from the January forecast) and 2.5 per cent in 2024 (-0.2 percentage points), a slight uptick in the global growth forecast for 2023. In the US, resilient household spending has prompted an upward revision of the growth forecast to 1.1 per cent in 2023. The European Union’s economy-driven by lower gas prices and robust consumer spending-is now projected to grow by 0.9 per cent.