India GDP Growth Forecast Cut

Moody’s Investors Service, due to the effect of demonetization, has cut its forecast for India’s GDP growth in 2017 by 40 basis points to 7.1%, Indiainfoline reported. India has been termed as the fastest growing economy among the G-20 countries by the rating agency. On Wednesday, the IMF estimated that India’s GDP growth will take a hit by 150 bps until March 2019 due to demonetization, which resulted in the suppression of the growth forecast by Moody’s. Moody’s foresees a risk to global growth from changes in US policies, apart from India being affected as a nation.