GST, bank balance sheet problems pushed India’s economic growth downward but recovery expected: UN

UNITED NATIONS: The Goods and Services Tax (GST) as well as protracted issues of corporate and bank balance sheet problems pushed India’s economic growth downward in 2017 but a gradual recovery is expected and the country’s economy is forecast to grow at 7.2 per cent in 2018, according to a UN report

According to estimates in the UN Economic and Social Commission for Asia and the Pacific’s (ESCAP) flagship publication the Economic and Social Survey of Asia and the Pacific, India’s GDP grew at 6.6 per cent in 2017, down from 7.1 per cent in 2016.
The report said that India’s GDP is forecast to grow 7.2 per cent in 2018 and 7.4 per cent next year.

In India, the recently introduced GST as well as weak corporate and bank balance sheets resulted in modest economic growth, but signs of recovery emerged in the second half of 2017, it said.

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