UN lowers India’s FY20 GDP growth forecast

5 min read
  1. United Nations(UN) in its World Economic Situation and Prospects (WESP) report has lowered India’s GDP growth in 2019-20 to 7.1% from its estimate of 7.5%.It was due to overall slowdown in global growth.
  2. The report has said that despite the downward revisions, India still remains the fastest growing major economy in the world ahead of China.
  3. The United Nations has also downgraded its forecast for world economic growth announcing that it expects overall growth of 2.7% in 2019 and 2.9% in 2020.
  4. The report has identified several downside risks that could trigger a more prolonged growth slowdown in the world economy which includes (a)further escalation in trade tensions (b)a sudden deterioration in financial conditions and (c)accelerating effects of climate change.
  5. Further, the UN report has also warned that if large economies continue to raise tariffs and escalate the trade war then the less developed economies could suffer more as they depend on large economies for their exports.
  6. WESP report is a joint product of the United Nations Department of Economic and Social Affairs (UN/DESA), the United Nations Conference on Trade and Development (UNCTAD) and the five United Nations regional commissions.

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