India Has 5.0% GDP Growth Forecast for 2020 as Part of Asia-wide Slowdown

State Bank of India, the country’s largest lender, has predicted that India’s Gross Domestic Product (GDP) growth will drop to a record low of 4.2 percent in the second quarter amid low automobile sales, deceleration in air traffic movements, flattening of core sector growth and declining investment in construction and infrastructure. India GDP growth has already hit a 6-year low of 5 percent during June quarter of this fiscal (Q1FY20).

They cut GDP forecast for Fiscal Year 2020 to 5 percent from 6.1 percent earlier, but expects growth rate to pick up pace in FY21 to 6.2 percent.

Indonesia GDP Growth is Suspicious

Indonesia’s economic growth has barely moved in three quarters, prompting some analysts to cast doubt over the data.

This means that China, India and Indonesia have GDP figures that are doubted by outside economists.

Economic growth in South-east Asia is forecast to ease to 4.5 percent in 2019 from 5.1 percent in 2018, before stabilizing at the same rate of 4.5 percent in 2020, British advisory firm Oxford Economics.

Vietnam is set to continue outperforming the rest of South-east Asia thanks to positive trade diversion effects, albeit with a moderation in its GDP growth to 6.7 percent this year, followed by a further slowdown to 6.3 percent in 2020.