New York: The World Bank on Wednesday cut its economic growth forecast for India and the e
ntire South Asian region on Wednesday.
Citing worsening supply bottlenecks and rising inflation risks caused by Russia’s invasion of Ukraine, World Bank brought down growth estimate for India from 8.7% to 8% for the 2022-23 fiscal year.
As for South Asia, the international lender cut by growth estimate from 7.6% to 6.6%.
According to World Bank, household consumption in India – the largest economy of the region — will be constrained by incomplete recovery of labour market from the pandemic and inflationary pressures.
“High oil and food prices caused by the war in Ukraine will have a strong negative impact on peoples’ real incomes,” World Bank Vice-President for South Asia Hartwig Schafer said in a statement.