Mumbai: International rating agency, Moody’s Investors Service lowered India’s economic growth projection. Moody’s slashed the projection to 8.8% for 2022 from 9.1% earlier. The agency said that rising inflation is the main reason for lower economic growth. The agency maintained the 2023 growth forecasts at 5.4%.
In its Global Macro Outlook 2022-23, Moody’s said that the rise in crude oil, food and fertilizer prices will weigh on household finances and spending in the months ahead. The Rate hike to prevent energy and food inflation from becoming more generalized will slow the demand recovery’s momentum.