The Asian Development Bank (ADB) has stuck to its earlier projection that India’s economy will grow by 7.4% in the current fiscal, despite concerns on Brexit and weak global prospects.
In a supplement to the Asian Development Outlook 2016 released in March, ADB on Monday said the developing economies are expected to grow at 5.6% in 2016, marginally below its previous projection of 5.7%. “Although the Brexit vote has affected developing Asia’s currency and stock markets, its impact on the real economy in the short term is expected to be small,” said Shang-Jin Wei ADB’s chief economist.
[related-post]
Growth in 2016 and 2017, the report noted, will be led by South Asia, and India in particular, which continues to expand strongly, while China is on track to meet earlier growth projections.
India, whose economy has shrugged off global headwinds and is on track to meet FY17 projected growth target of 7.4%, will be supported by brisk consumer spending and an uptick in the rural economy, the report said.
