Indian economy to grow 9% next fiscal – Credit Suisse

Swiss brokerage Credit Suisse expects the economy to continue to show positive surprises and record up to 9 per cent growth in the next fiscal.

For the current financial year too, the brokerage anticipates growth to be higher than the consensus forecast of 8.4-9.5 per cent and printing in at around 10.5 per cent.

As a policy, Credit Suisse does not provide absolute growth numbers in its forecast. However, an extrapolation of data available and projections indicate that economic growth could clip 9 per cent in the 2022-23 period, which according to the brokerage is up to 400 basis points (bps) over the consensus numbers.

“We expect GDP getting an upgrade of 4 percentage points over the consensus for FY23 as output should get closer to the pre-pandemic trend than what is currently forecast.”

“The economy is expected to continue to show positive surprises even though the recovery has so far been lop-sided but in the next three-six months most of the low-income jobs should recover too,” Co-Head Equity Strategy Neelkanth Mishra said on Thursday.

While warning that high energy prices could be a headwind, Mishra said the economy can sustain faster import growth. (https://economictimes.indiatimes.com)