Slowdown year

Global and domestic factors will affect output

The year 2022 marked the end of easy money, at least for now. The coming year, consequently, will witness higher interest rates and a slowing global growth. This would affect economic outcomes in India through various channels. After a fair bit of reluctance, large central banks finally got their act together to fight inflation as it became clear that it was not transitory. Double-digit or near double-digit inflation rates in advanced economies raised the risk of de-anchoring inflation expectations, which could have significantly increased the cost of regaining price stability. Higher inflation in advanced economies is partly being driven by