Looking into 2018
Though India’s economy may suffer a temporary setback due to the introduction of new reforms like Goods and Services Tax and demonetisation, the data predicts it will aid the growth in the long term.
In India, the transitory effects of demonetisation and of the implementation of the GST have led to a downward revision in 2017 growth projections, while business investment has remained weak. In the longer run, the GST is expected to boost investment, productivity, and growth.” the report said.
GDP to accelerate to 7.2% in 2018, 7.4% in 2019, making India fastest growing economy.
Overcoming the slowdown from demonetisation, the growth rate of India's economy is projected to accelerate from this year's 6.7 percent to 7.2 percent next year and 7.4 percent in 2019 making it again the world's fastest growing major economy, According to the UN REPORT.
"Despite the slowdown observed in early 2017 and the lingering effects from the demonetization policy, the outlook for India remains largely positive, underpinned by robust private consumption and public investment as well as ongoing structural reforms," according to the World Economic Situation and Prospects 2018 report.
However, the 7.2 percent growth rate projected for India next year in the latest report is lower than the mid-year update's projection made by the UN in May of 7.9 percent.
China's economic growth for this year was 6.8 percent, according to the report, putting it slightly ahead of India. But the growth projections for China is 6.5 percent next year and 6.3 percent in 2019
South and East Asia remain the world's most "dynamic regions" accounting for nearly half of global growth in 2017, with China alone contributing about one-third, the report said.
Sources: World Economic Situation and Prospects 2018 report.
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