Search Result for : Gdp Growth

The Dollar Business Bureau  The growth of China’s services sector was marginally low in the month of July as the expansion of new businesses eased, said a private business survey on Thursday.  The latest findings were in sync with an official estimate of non-manufacturing sector released on Monday that showed cooling down of growth in services sector, adding to the speculations that the world’s second largest economy could grow slightly slower in upcoming months.  The Caixin/Markit services purchasing managers' index (PMI) declined a little to 51.5 in July compared to 51.6 in the previous month.  Though the decline was marginal, the figures matched with the level of reading in April this year that was lowest since May last year.  New businesses continued to grow at ...

The Dollar Business  Bureau  Key US-made consumer durable goods shipments showed an increase in June for the 5th consecutive month indicating that business spending on equipment has increased boosting the economic growth in the second quarter.  That the US economy is bettering gained weight as data gathered showed a sharp narrowing of the trade deficit in goods while there has been an increase in retail and wholesale inventories.  Government reports on the second quarter GDP estimates on Friday prompted economists to raise growth forecasts to 3.5% annual rate.  Voicing cautioned optimism, Chris Rupkey, the Chief economist at Mitsubishi UFJ Financial Group (MUFG), New York told reporters that, ‘the economy still has legs in this long expansion from the end of the recession. The ...

By Abin Daya The oil situation is more fluid than the fuel itself, despite all the efforts of OPEC and non-OPEC producers. While the extending of the supply cut was to have provided some stability to prices, this does not seem to be the case. Prices of India’s basket of crude have dropped to their lowest levels in 28 weeks. And with the strengthening of rupee, this seems to have given RBI ample opportunities to shore up its FX reserves, which are currently at $381Bn, more than a year’s import worth. The only thing missing here is the drop-in retail fuel prices. Hopefully, it will happen soon. The Provisional Estimates of full year and Q4 GDP and GVA numbers were released on ...

The Dollar Business Bureau The United Nations (UN) has revised India’s GDP growth forecast downward for 2017 but projected an increase in 2018 predicting 7.9% economic growth as it warned that the banking sectors’ stressed balance sheets will have adverse impact on investments in the short-term. The UN World Economic Situation and Prospects (UNWESP) in its mid-2017 report, launched on Tuesday, said that India is predicted to achieve a growth of 7.3% this year, downward from its earlier forecast of 7.7%, which it made when the report was launched in January. However, the revised report forecast that the country will achieve a notable 7.9% GDP growth next year, from its earlier estimates of 7.6% made in the January report. The report, however, cautioned that stressed balance sheets of India’s banking sector, which has ...

The Dollar Business Bureau It has been six months since the Modi-led government decided to invalidate more than 85% of cash in circulation. Curbing terror funding, boosting cashless economy and cracking down on counterfeit currency were among a host of reasons cited, the most critical one being elimination of black money from circulation. The UN recently released a study titled ‘Potential Impact of Demonetisation in India’, which stated that demonetisation alone will not be able to uproot the seeds of black money. To prevent future flow of black money, the study said, other complementary measures would be required. The Goods and Services Tax reform, voluntary disclosure of income scheme, the linking of taxation with unique identification numbers, were among the other supporting steps ...

The Dollar Business Bureau Contrary to Trump's promises of ushering an era of 3% annual economic growth, the first quarter of his Presidency saw US growth rate decline to the lowest in three years. Sluggish consumer demand and a fall in government expenditure caused GDP growth in the first quarter of 2017 to slump to 0.7%, as against 2.1% in the previous quarter (December 2016).  Unable to meet the predictions of 1.1% made by analysts, growth in this quarter was marginally lower than that of the first quarter of 2016, which stood at 0.8%. This has been the worst quarterly economic performance since the first quarter of 2014 when growth experienced a 1.2% drop.  While a contraction of 4% in defence expenditure caused government spending to fall to a ...

The Dollar Business Bureau World Bank, in its new edition of 'South Asia Economic Focus', marks South Asia as the fastest growing region in the world. Growth in the region, pegged at 6.7% for 2016-17, was stronger than that in East Asia, which stood at 6.3%. The global annual growth of 2.3% is also dwarfed by South Asia's stellar performance. Bhutan, Bangladesh and India were labelled as the high performers carrying off the entire region into glory.   But just like the rest of the world, growth in trade and investment was disappointing even in the fastest growing region. This trend may soon witness a turnaround as countries like India and Sri Lanka rebound on export growth. In India, the month of March 2017 boasted a six-year ...

By Abin Daya It has been over 19 months since the tumult over India’s GDP began. Many economists have questioned the government’s method of calculation since it was implemented in 2015. The latest announcement by the Indian government has placed the GDP at 7% which is a sudden increase from 4.7% as per growth estimates released in May 2013-14. The data released by the Central Statistics Office predict the GDP of Q3 FY17 at 7%. Let us look at the drivers behind it by breaking them up into components and comparing them with the previous figures. India’s GDP for Q3 of FY17 grew by 7% y-o-y, lower than the 7.4% (revised) growth of Q2 FY17 and higher than 6.9% of Q3 FY16 This has ...