Moody’s slashes India’s GDP forecast for FY22 to 9.1% from 9.5%

Moody’s Investor Services on Thursday declared its prediction for India’s GDP to fall by 0.4 percent from 9.5 percent to 9.1 percent this year.

Last month according to the official data, Moody’s forecast of the nation’s GDP grew at a much lower percentage than expected percentage which was at 5.4 in the October-December time period. Economists had predicted the GDP growth in the 3^rd quarter of this current fiscal year at 5.7 percent.

Moody’s Investor Services’ big move comes right after a 25-basis-point rise in the coronavirus period interest rates given by Federal Reserve – this increase was seen for the first time in 3 years. The United States’ Central Bank prompted one rise each at all the remaining 6 FOMC meetings this year.

Just this year in February Moody had upgraded India’s growth rate from 7percent to 9.5 percent. Giving a stronger economic recovery prediction from the lockdown of 2020 and the second phase of the coronavirus pandemic mid-2021. Back then the GDP forecast for 2023 was retained at 5.5 percent.

This upward trajectory in February this year showed a growth prediction for 2022 meaning, Moody’s saw India’s growth at 8.4 percent for FY23 – about 60 basis points upward than what the Reserve Bank of India had predicted.

Moody’s Investor Service nicknamed Moody’s is a bond credit rating entity of Moody’s Corporation, This wing represents the conventional line of business of Moody’s Corporation. Moody’s Investors Service gives international financial real-time research on bonds released by private and public entities. Its Headquartered in New York, United States.