INDIA ECONOMY GROWTH

Let’s move our sight to this world’s second most populous country for a while. While China has been struggling with its economic slowdown, how about India? Let’s take a look of this discussion of India economy.

Optimistic India

Based on the Organisation for Economic Cooperation and Development (OECD) research, it is said that Indian economy will continue to see a prosperous growth at least 7.4% in the next year.

For India, their fiscal starting from April this year. India’s Central Statistics Office said that India’s economy could grow at a 5 year high of 7.6% in the fiscal ending March. This number will be overtaking China’s.

Speaking about China’s economy, OECD said that China is expected to continue to rebalance its economy from manufacturing to services. The growth is forecasted to be at 6.5% in 2016 and 6.2% in 2017. Whereas, other developing country, such as Brazil, its economy is experiencing a quite serious recession. It is expected to shrink by 4% this year.

What can we hope for this year?

In emerging market economies, monetary support should be provided where possible, taking into account inflation developments and capital market responses.

The world is predicted to face an economic problem, where US, China, and European economy don’t seem to be in a good condition. Trade and investment are weak while sluggish demand is leading to low inflation, inadequate wage and employment growth.

Achieving strong growth in the global economy remains volatile. We can only hope for a modest recovery in advanced economies and slower activity in emerging markets.

The Global Economy

The global economy itself is anticipated to expand 3% and advance to 3.3% in 2017. Whereas, Euro is projected to grow at a 1.4% this year.

OECD made a note that sole reliance on monetary policy had been proven insufficient to boost demand and produce satisfactory growth, while fiscal policy was contractionary in several major economies and structural reform momentum had been slowed.