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NEW DELHI, Nov 30: India’s economic growth slowed to 8.9 per cent in the second quarter, still second only to China, official data showed on Friday, but analysts predicted a further weakening in the months ahead.
The impact of aggressive monetary tightening to tame prices and an appreciating currency would take their toll on what has been blistering growth by Asia’s third biggest economy, they said.
“Given that it takes 12 to 18 months for the full effects of rate changes to be felt we won’t really be confident the economy is out of the woods until the end of 2008,” said Robert Prior-Wandesforde, economist at HSBC in Singapore.—AFP
