Expert views: Economic growth slows to 5.7% in April-June

02 September 2017, 12:24 | Isaac Mcdaniel

Click here for enlarge

Click here for enlarge

India's Gross Domestic Product (GDP) data surprised analysts and economist, as touched to a three-year low in the first quarter of financial year 2017-18.

Dr. Soumya Kanti Ghosh, Group Chief Economic Advisor at State Bank of India stated economic growth plunged below 6% as gross value added (GVA) at basic prices grew by 5.6% in Q1FY18 - a sharp 200 basis points less than the corresponding quarter of the previous year. In the earlier quarter, the rate of GDP was 6.1 percent.

Terming the Q1 GDP growth of 5.7 per cent as disappointing, a slew of foreign brokerages on Friday cut their full-year forecast to well under the 7 per cent being targeted by Government.

The national income data released by the Central Statistics Office (CSO) for the first quarter is lowest during the Narendra Modi-led government's regime, which assumed office in May 2014.

The financial, insurance, real estate and professional services sectors also slowed to 6.4 percent in the June quarter from 9.4 percent a year ago.

Remarking that the growth numbers for both GDP and GVA had "undershot" her expectations, rating agency ICRA's principal economist Aditi Nayar said this was "a thirteen-quarter low in GDP growth" and structural factors such as higher commodity prices, the onset of GST and the lingering effects of demonetisation could be major contributors. "Since it was announced that GST would come into operation from July 1, most manufacturers were de-stocking during period April-June".

Area rescue teams send expertise, special gear to help Harvey survivors
Vermont Task Force 1 Swift Water Rescue Team will perform evacuations and rescues in flooded areas. The number of Harvey victims is expected to rise as recovery efforts continue.

Nandyal Bypoll Election Result-2017 after Round 13
Political analysts feel that the Nandyal By- Elections results 2017 will reflect in the results of 2019 general elections. "The people have voted for development of Nandyal , which was my father Bhuma Nagi Reddy's wish", she said.

Chiefs expect Spencer Ware to miss the season with knee injury
Reid said that third-round pick Kareem Hunt will start the season opener against the New England Patriots on September 7. Ware injured his knee in the Chiefs' 26-13 preseason loss to the Seattle Seahawks on Friday night.

Services sector, especially trade, hotels and transport grew 8.7% as against 7% a year ago.

The data also showed that the sectors that would have been hit by demonetization were the ones which took the biggest hit to growth. "Its performance has been poor, though the sales growth is good", he added. Demonetisation, according to Sabnavis had impacted consumer demand and the SME segment. "I am confident that in the July-September quarter, economy will grow by 7-7.5 per cent".

Many analysts had expected the economy to bounce back after the government's crackdown on black market cash past year.

Going ahead, says Indranil Pan, group economist at IDFC Bank, "growth will be driven by GST (goods and services tax) and the pace of cleaning banks' balance sheets to improve the credit culture in the economy".

"With due respect to my mentor Manmohan Singh, this quarterly data can not be used to say look GDP will drop by 1 -2.5 per cent". Having said that, we are in the middle of transformative phase and the GDP should be back to normalcy over the next couple of quarters, he added.



Other News

Trending Now

20 years after Princess Diana's death, her influence lives on
Harry came over to have a look at the picture which had left his older brother in stitches and William said: "Look at my shades". Princess Diana's sons, Prince William and Prince Harry , visited a growing memorial outside her former home, Kensington Palace.

CeX data hack hits two million United Kingdom accounts
But Cex says it stopped storing card data in 2009 and that any bank details stolen by hackers have "long since expired". It's that time again when we reset the imaginary internet sign to read "0 days without a United Kingdom data breach".

Two million Muslims begin Hajj in Makkah
With the exception of previous Iranian boycotts, impeded access to the Hajj is virtually unprecedented in modern Islamic history. Ibu Mariah Marghani Muhammad is joining more than 220,000 pilgrims from Indonesia, the world's most populous Muslim country.

Microsoft Discontinues Launch Xbox One
Still, let's pour one out for the bulky monstrosity that kickstarted this present generation of Xbox gaming. The original Xbox One was first revealed in May 2013 at a highly criticized press conference.

Assisted living residents rescued from rising floodwaters in Texas
At least two people have been killed while a further 1,000 people have been rescued from the Houston area alone. On Sunday morning, McIntosh said her mom texted her a picture that showed residents in waist-deep water.

Jackson Hole provides little in the way of monetary policy update
Hurricane Harvey has been wreaking havoc in one of the US' most populous cities with floods and storms. However, Draghi made no mention of monetary policy or the shared currency in his Jackson Hole speech.

Amazon cuts prices on items at Whole Foods
But one other big change within Whole Foods locations might be just as important - if not more so - than those other factors. Amazon says there'll be immediate price cuts on many grocery staples including vegetables, fruit, fish, meat and eggs.

TDP scores a big victory in Nandyal
Telugu Desam Party has secured 97,106 votes; YSR Congress 69,710 votes while Congress had to settle with 1,153. This could mean that YSRCP candidate Silpa Chandra Mohan Reddy will be declared as the victor .

CFL team hires former Baylor Football Coach Art Briles
Briles, 61, spent 2008 through 2015 as the coach at Baylor before being fired amid a sexual assault scandal in May of 2016. Briles and Jones will be responsible for improving the CFL's worst offense.

Assembly bypolls: Counting of votes today; all eyes on Panaji, Bawana
With 16167 votes, Vishwajit Rane beat Congress candidate Roy Naik, who received 6101 votes after total four rounds of counting. AAP candidate Ram Chandra, CM Arvind Kejriwal and other ministers of the Delhi government had all campaigned in Bawana.