Fitch cuts India's FY18 GDP growth forecast to 6.7 pcDecember 04, 2017 21:27
Days after India's economy showed signs of recovery, Fitch Ratings today cut the country's GDP growth forecast for the current fiscal to 6.7 per cent from the earlier projected 6.9 per cent, saying the rebound was weaker than expected.
It also cut GDP growth forecast for 2018-19 fiscal year to 7.3 per cent from 7.4 per cent predicted in its September Global Economic Outlook.
Fitch, however, expects GDP growth to pick up in the next two years on back of gradual implementation of the structural reform agenda and higher real disposable income. "The Indian economy picked up in 3 Q17 (July-September), with GDP growing by 6.3 per cent year-on-year, up from 5.7 percent in 2Q17.
"However, the rebound was weaker than we expected, and we have reduced our growth forecast for the fiscal year to end-March 2018 (FY18) to 6.7 per cent from 6.9 per cent in the September GEO," Fitch said in its latest GEO.