NEW DELHI: Indian economy has outperformed in recent years but the near term growth risks for the country is on the downside relatively to a lot of consensus estimates, according to Goldman Sachs.

Jan Hatzius, chief economist and head of Global Economics and Markets Research at Goldman Sachs said India as an economy has outperformed in recent years and it has been growing quite strongly.

“At the moment, there is a quite a slowdown in India basically because of the currency reform that was introduced by the Modi government several weeks ago,” Hatzius said.

He further noted that “right now the economy is slowing quite a bit. We think in the near term risks are definitely on the downside relatively to a lot of the consensus estimates out there.”

Goldman Sachs expects global growth in 2017 to be around 3.5 per cent led by the US.

“Our expectations for economic policy under the Trump administration and under unified Republican control are that there will be tax reform coupled with some fiscal easing and also some increase in infrastructure spending. And we do expect that to provide a positive impulse to economic growth,” he said.

Elsewhere in the world it is a more mixed picture.

The Euro area pace of growth is more or less the same at 1.5 per cent, which is consistent with gradual labour market improvement, he said.