With Q2 GDP growth sharply lower than expected, the critical question is whether this is a temporary brake or we need to brace for slower growth ahead. Sharing my views on this
CareEdge Chief Economist, Rajani Sinha, shares her insights on food inflation, #GDP growth, and the global environment in The Indian Express OpEd Column. View Article: https://lnkd.in/dsm7K_Vf #CareEdgeRatings #EconomicUpdate #IndianEconomy #Inflation
Great perspective!
Thanks for sharing...
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3moIndia's Q2 GDP has slowed to 5.4% below expectations of 6.5%. This was mainly due to high inflation, weaker consumption, lower government spending (General Elections effect), adverse weather, poor Q2 results, lower urban spending due to elevated interest rates (repo rate 6.5%). However, govt. spending is likely to improve driven by increased state spending following elections and higher rural demand assuming a good harvest. I am of the view that we will have improvement in GDP in Q3 and Q4 and we should still have growth figures above 6.5% for FY25 as long as inflationary pressures are managed and there is revival in consumption.