India is still the fastest-growing major economy even as the Ukraine conflict impacts the global gross domestic product (GDP), according to a UN report. India is projected to grow by 6.4 per cent in 2022, slower than last year’s 8.8 per cent, due to higher inflationary pressures and uneven recovery of the labour market curbing private consumption and investment, the UN report shows, Trend reports citing India Today.
The UN Department of Economic and Social Affairs said in its World Economic Situation and Prospects (WESP) report released on Wednesday that the war in Ukraine has upended the fragile economic recovery from the pandemic, triggering a devastating humanitarian crisis in Europe, increasing food and commodity prices and globally exacerbating inflationary pressures, PTI reported.
INDIA GDP GROWTH
"India, the largest economy in the region, is expected to grow by 6.4 per cent in 2022, well below the 8.8 per cent growth in 2021, as higher inflationary pressures and uneven recovery of the labour market will curb private consumption and investment," the report said.
For the fiscal year 2023, India’s growth is forecast to be 6 per cent.
Lead Author & Chief, Global Economic Monitoring Branch, Economic Analysis and Policy Division, United Nations Department of Economic and Social Affairs Hamid Rashid told reporters at the UN Headquarters that almost all regions in the world are affected by high inflation except for East Asia and South Asia.
He said "India in that sense" is a "little bit" in a better position as it did not have to aggressively pursue monetary tightening compared to other countries in Latin America.