United Nations sees India’s growth at 5.8% during 2023

United Nations : The UN said on Tuesday that with many positives, India’s economic growth this year is expected to hold at 5.8 per cent, affirming a series of international organisations’ projections that the country will be the fastest-growing major economy.

The Midyear Update to the UN’s World Economic Situation and Prospects report projected next year’s gross domestic Product (GDP) to hold at 6.7 per cent supported by resilient domestic demand.’ Speaking at the release of the report, the chief of the UN’s Global Economic Monitoring Branch, Hamid Rashid, said that India continues to be the bright spot in the world economy with many positives, including that the inflation has come down significantly to about 5.5 per cent.

“This means that there’ll be significant room for both fiscal expansion and monetary accommodation, so that will support domestic demand,” he said However, he said that there were external risks.

If the external financing conditioning deteriorates further and becomes much tighter, Rashid said, India would face some challenges, especially for exports.