SBI revises GDP growth forecast for this year to 6.8 percent
HY News
02 September, 2022 12:25 pm IST
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The State Bank of India (SBI) lowered its forecast for growth in the Indian economy for the current financial year, 2022-’23, to 6.8% from its June estimate of 7.5%. Lower than expected growth in the first quarter was the reason behind the revision, the country’s largest bank said in a report.
SBI group chief economic adviser Soumya Kanti Ghosh said, "We are now revising our annual GDP growth for FY23 to 6.8%, mostly due to statistical adjustments, but said growth momentum likely to show an increasing momentum in the second half," as reported by news agency PTI.
The SBI report also noted that the first quarter growth rate, despite being in double digits, was “way below market expectations”. The 4% growth rate in the manufacturing sector was the “primary culprit” contributing to the poor numbers, the report said.
In a note on Thursday, the SBI chief economist highlighted that at 13.5% real GDP growth has contracted by 9.6% sequentially, but the seasonally adjusted real GDP growth series shows a pick-up in economic momentum, with higher growth at 5.6% sequentially in Q1 compared to -4.1% in Q1FY22 and 1.9% in Q4FY22.
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