International financial agency - Asian Development Bank (ADB) has cut India's economic growth forecast for the current financial year 2024-25 from seven percent to 6.5 percent. ADB has also cut India's growth forecast for the financial year 2025-26 from 7.2 percent to seven percent. The bank says that private investment and housing demand are expected to decline, which will have a negative impact on GDP growth. The report said that the economies of Asia and the Pacific region are expected to grow at a rate of 4.9 percent in 2024, slightly lower than the five percent forecast by ADB in September. RBI also cut the growth forecast for the current financial year from 7.2 percent to 6.6 percent last week. The central bank also raised the inflation forecast to 4.8 percent in view of the slowdown in economic activity and the rise in food prices.
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