India’s Shock GDP Slump Prompts Growth, Rate-Cut Revisions By Bloomberg

India’s Shock GDP Slump Prompts Growth, Rate-Cut Revisions By Bloomberg



(Bloomberg) — Economists cut their forecasts for India’s economic growth and predicted deeper interest-rate cuts after data showed a sharper-than-expected slump in output.

Goldman Sachs Group Inc (NYSE:). and Citigroup Inc (NYSE:). lowered their growth projections to 6% for the fiscal year through March 2020, while Oxford Economics Ltd. said there’s a risk the expansion could be weaker than that.

Data late Friday showed gross domestic product rose 5% in the June quarter from a year ago, the slowest pace in six years and lower than all the forecasts in a Bloomberg survey of economists. The weakness was broad-based, with consumption and export growth slowing while investment remained subdued.

The slump will put the onus on the Reserve Bank of India to continue cutting interest rates after 110 basis points of easing already this year, the economists said.

The government — which is sticking to its 7% growth projection for the fiscal year — has in recent days announced a number of steps to improve India’s longer-term growth, without providing any immediate support. It will merge state-run banks to help spur credit growth, ease foreign investment rules and give concessions on vehicle purchases.

Here’s a look at the new projections from economists:

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link