To create additional space, medium-term commitment must be provided to reduce the overhang of government borrowings on future growth. Synopsis A bipartisan council should be set up and granted authority to enforce a ‘comply or explain’ discipline on budgetary assumptions and attempts to obfuscate. By Viral AcharyaWith the scale of GDP contraction due to the … Read more
Synopsis While the size of the GDP collapse is large, India is hardly alone in this. Deep economic contractions have been widespread across the world. Indeed, given the long lockdown that India imposed on itself, the fact that the economy shrank sharply should hardly be surprising. By Amartya LahiriIndia’s GDP contracted by 23.9% in Q1 … Read more
Fitch Ratings on Tuesday projected a massive 10.5 per cent contraction of India’s economy in the current financial year. India recorded one of the sharpest gross domestic product (GDP) contractions in the world in April-June. India’s GDP shrank by a staggering 24 per cent year-on-year amid the imposition of one of the most stringent global … Read more
New Delhi: With COVID-19 still dominating major developments globally, the world economy is not likely to re-attain pre-pandemic output levels before 2022, says a report. According to Dun & Bradstreet Country Risk and the Global Outlook, “nothing about the pandemic can be classified as over, despite recoveries in activity levels in some economies in Q3, … Read more
By Raghuram Rajan The recently released quarterly GDP growth numbers for the first quarter of FY2020-21 should alarm us all. The 23.9% contraction in India (and the numbers will probably be worse when we get estimates of the damage in the informal sector) compares with a drop of 12.4% in Italy and 9.5% in the … Read more
The sharper-than-expected 23.9% decline in june quarter gdp suggests recovery could take a while and fy21 may see a steeper contraction than earlier estimated. India will need to grow at 8% over the remaining three quarters just to make up the deficit and avoid a full-year contraction. A look at the numbers: Source link
MUMBAI: The economy is expected to contract by 25 per cent each in the first quarter of FY’21 both in terms of GDP ( gross domestic product) as well GVA (gross value added) according to ratings firm Icra. Despite a 40 per cent drop in manufacturing and minimal activity in the service sector, the higher … Read more
Stock markets globally have rebounded sharply towards their pre-Covid levels. Technology, pharma and IT have been a big gainers in the Covid situation and tech-heavy exchanges, Nasdaq (US) and Shanghai (China), are at all-time/yearly highs. Many other indices are only a few percentage points away from their respective peaks. The higher the government support, technology … Read more
ROME – Italy‘s economy shrank 12.4% in the second quarter from the previous three months, preliminary data showed on Friday, as activity nosedived during the coronavirus pandemic, but the fall was less severe than many analysts had predicted. The quarterly slump in gross domestic product (GDP) in the euro zone’s third largest economy was “unprecedented”, … Read more
The central government has complete power with a clear mandate, but directives from the Centre have to be executed well at the state level. So, there are many things that are still not in Modi’s hands, says Raamdeo Agrawal, Joint Managing Director, Motilal Oswal Financial Services in an interview with Narendra Nathan and Sanket Dhanorkar. … Read more