India's GDP Projected To "Remain Strong" At 5.8%, Says UN Report

The World Economic Situation and Prospects 2023 report said the world output growth is projected to decelerate from an estimated three per cent in 2022 to 1.9 per cent in 2023.

India's GDP is projected to moderate to 5.8 per cent in 2023 as higher interest rates and global economic slowdown weigh on investment and exports, the United Nations said on Wednesday, noting that the country's economic growth is expected to remain "strong" even as prospects for other South Asian nations "are more challenging".

The World Economic Situation and Prospects 2023 report said the world output growth is projected to decelerate from an estimated three per cent in 2022 to 1.9 per cent in 2023, marking one of the lowest growth rates in recent decades as a "series of severe and mutually reinforcing shocks - the COVID-19 pandemic, the war in Ukraine and resulting food and energy crises, surging inflation, debt tightening, as well as the climate emergency - battered the world economy in 2022."

The report, produced by the United Nations Department of Economic and Social Affairs (UN DESA), said that in South Asia, the economic outlook has significantly deteriorated due to high food and energy prices, monetary tightening, and fiscal vulnerabilities. Average GDP growth is projected to moderate from 5.6 per cent in 2022 to 4.8 per cent in 2023.

"Growth in India is expected to remain strong at 5.8 per cent, albeit slightly lower than the estimated 6.4 per cent in 2022, as higher interest rates and a global slowdown weigh on investment and exports," it said.