The Asian Development Bank (ADB) has slashed India's economic growth projection for 2022-23 to 7 percent from 7.2 percent earlier, citing higher than expected inflation and monetary tightening.

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India's economy grew 13.5 percent year-on-year in the first quarter of 2022-23, reflecting strong growth in services, ADB said in a supplement to its flagship ADO report on Wednesday.

"However, GDP growth is revised down from ADO 2022's forecasts to 7 per cent for FY2022 (ending in March 2023) and 7.2 per cent for FY2023 (ending in March 2024) as price pressures are expected to adversely impact domestic consumption, and sluggish global demand and elevated oil prices will likely be a drag on net exports," it said.

The ADO expects the Chinese economy to expand by 3.3 percent in 2022 rather than the 5 percent forecast earlier. Lockdowns from the zero-COVID strategy, problems in the property sector, and weaker external demand continue weighing on the economic activity in China, said the report.

Also Read: Fitch slashes India's FY23 GDP growth forecast to 7% from 7.8%

(Edited by : Sangam Singh)

First Published:Sept 21, 2022 11:45 AM IST