UN bearish on India, forecasts 5.3% Growth for 2014

NEW DELHI: United Nations has lowered India's economic growth forecast for 2013 to 4.8% while warning that emerging markets should be prepared to deal with the impact of US Federal Reserve's quantitative easing programme.

India's economy is forecast to grow at 4.8% in 2013, down 1.3% from its earlier projection, the UN's World Economic Situation and Prospects 2014 report said.

Similarly, it has lowered the growth projection for 2014 to 5.3%, down 1.2% from earlier forecast. The UN sees India to grow by 5.7% in 2015.

"In China, growth was expected to maintain a pace of about 7.5% over the next few years, while India's economy was forecast to grow by more than 5%," the UN's World Economic Situation and Prospects 2014 report said.

Growth in South Asia remains lacklustre as a combination of internal and external factors hamper activity, particularly in the region's largest economies, such as India, it said.

India's growth in the first half of 2013-14 stood at 4.6%. To achieve 5% growth in this financial year, the economy has to expand by 5.4% in the second half.

Shamshad Akhtar, UN's Assistant Secretary-General for Economic Development, Department of Economic and Social Affairs, said much of the world's economic weakness stemmed from developed economies which continued to struggle, including the euro area and the US.