Following GDP : Goldman cuts GDP forecast to 4%, sees Rupee at 72 in six month.

Dated : 3rd Sep, 2013
Source : ET

Goldman Sachs has cut India's GDP growth rate forecast to 4% from 6% earlier for the current financial year, reflecting more difficult external funding conditions as markets increasingly anticipate US tapering and eventual exit from unconventional monetary policies.

"We are cutting our growth forecasts for India and most of southeast Asia. The largest downward revisions are in India, followed by Indonesia, Thailand and Malaysia," the global investment banking giant said in a report.

Goldman's report comes after JPMorgan, HSBC Global Research, Nomura and ICRABSE 0.29 % cut their growth forecast on India to below 5% for the current financial year (FY14).

In the report, Goldman says that the Indian currency faces near-term pressure, and revises its three- six- and 12-month forecasts on the rupee to 70, 72, and 70, respectively, against the US dollar.

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