Nomura cuts India's 2021 GDP forecast to 11.5%; sees higher inflation

Nomura GDP forcast: Repricing of emerging market (EM) risk premium, Nomura said, could expose vulnerabilities in Indonesia, India and the Philippines

The resurgence of Covid cases in India amid possibility of higher inflation as we head deeper into 2021 has led Nomura to cut the 2021 gross domestic product (GDP) forecast for India to 11.5 per cent from the earlier 12.4 per cent. Besides India, it has cut the 2021 GDP forecast for the Philippines to 5.4 per cent from 8.8 per cent.

Repricing of emerging market (EM) risk premium, Nomura said, could expose vulnerabilities in Indonesia, India and the Philippines. The challenge for EM Asia going forward, according to them, is that these countries may face tighter financial conditions even