The UN has cut down its growth forecast for India for the year 2012, predicting a 6.7% growth rate rather than a 7.7% rise predicted earlier, while listing euro debt crisis as the biggest threat to the world economy.
In its World Economic Situation and Prospects mid-year update, the UN said the global economic situation continues to be challenging and global growth will likely remain tepid in 2012 following a marked slowdown in 2011.
The global economy is projected to grow by 2.5% in 2012 and 3.1% in 2013, following a growth of 2.7% in 2011, a slight downward revision from previous forecasts, the report said.
"An escalation of the euro area debt crisis could result in severe turmoil in financial markets and a sharp rise in global risk
aversion, leading to a further weakening of global growth," the UN said in the report.
Most regions of the world would also be expanding at a pace below potential.
Economic growth in South Asia is projected to be moderate to 5.6% in 2012, down from 6.1% in 2011 as the region continues to face significant regional and global headwinds.
India's economy is forecast to expand by 6.7% in 2012, after growing by 7.1% in 2011, it said.
In January this year, the UN had pegged India's economic growth rate at 7.7% for 2012 and 7.9% in 2013 in its World Economic Situation and Prospects.
Weak demand in developed countries and a slowing Chinese economy are likely to weigh on economic growth in East Asia.
Average regional growth is projected to slow from 7.1% in 2011 to 6.5% in 2012.
Growth in China is forecast to slow from 9.2% in 2011 to 8.3% in 2012.
