Indian economy is likely to grow by 7.2 per cent in 2018 and go up further to 7.4 per cent in the following year on the back of strong private consumption, public investment and the ongoing structural reforms, says a UN report. The ‘World Economic Situation and Prospects 2018’ report unveiled by United Nations Department of Economic and Social Affairs (UN DESA) stated the overall, economic outlook for South Asia is seen largely favourable and steady for the short term, notwithstanding significant medium-term challenges.
On India, the report has projected a positive outlook despite the slowdown early this year and the lingering effects of demonetisation. The UN DESA report says that the GDP growth is projected to accelerate from 6.7 per cent in 2017 to 7.2 per cent in 2018 and 7.4 per cent in 2019.
The report further stated that Central banks in developed economies are currently operating in largely unchartered territory, with no historical precedent as guidance. This makes any adjustment of financial markets less predictable than during previous recoveries and amplifies the risks associated with policy errors.
