Tag: indianeconomy

S&P Global cut its growth forecasts for some of Asia's top economies including India, the Philippines, and Malaysia on Monday, offsetting upgrades to China and South Africa, and much of Latin America. The estimates, which feed into S&P's closely-followed sovereign ratings, saw India's growth projection cut to 9.5% from 11% due to its COVID-19 outbreak, the Philippines' lowered to 6% from 7.9% and Malaysia's downgraded to 4.1% from 6.2%.In contrast, China's forecast was surged up to 8.3% from 8%, Brazil's was upgraded to 4.7% from 3.4%, Mexico's to 5.8% from 4.9% while those of South Africa, Poland, and Russia were lifted to 4.2%, 4.5%, and 3.7%, respectively, from 3.6%, 3.4%, and 3.3%. "The top risk facing emerging market economies (EMs) is a slower-than-expected rollout of the vaccines," S&P's economists said in a news report, adding that the pandemic would only subside once vaccinations "reach a level consistent with herd immunity". Read more

GDP of India returned to growth (0.4 percent)in October-December after two-quarters of contraction, the National Statistical Office (NSO) said yesterday (26th Feb.2021). In 2020-21, GDP is set to fall 8 percent against an earlier estimate of 7.7 percent, the release said. This is a “reflection of further strengthening of V-shaped recovery”, which began in Q2 of 2020-21, especially after a large GDP contraction in Q1 due to the lockdown, the Ministry of Finance said in a release. However, the cheer may not last because GDP is likely to fall 1.1 percent in Q4 if we triangulate the data available for the first three quarters with the annual estimate. A more surprising fact is that even this likely contraction in Q4 needs 29 percent real growth in government spending. Expenditure by the government fell in Q2 and Q3 when the private corporate and informal sectors in the economy were in pandemic pain, the data shows. Read more