(ET)
The country’s largest public sector bank, State Bank of India, has just released a report, that predicts only a 4.2 per cent GDP growth in the second quarter.The bank attributes it to low automobile sales, deceleration in air traffic movements, flattening of core sector growth and declining investment in construction and infrastructure.
The growth forecast for FY20 has now come down to 5 per cent from 6.1 per cent earlier, the report also said. State Bank of India joins other global agencies – the Asian Development Bank, World Bank, Organisation for Economic Co-operation an Development (OCED), Reserve Bank of India (RBI) and the International Monetary Fund (IMF) – in downgrading India’s FY20 growth rates.India’s GDP was already at a 6-year low of 5 per cent in Q1.
