You are here: Home » Budget » Economic Survey » Top Stories
Business Standard

Global economic outlook most favourable since 2008: Economic Survey

Says it is likely to improve further on the back of plummeting crude oil prices coupled with sharp recovery in the US economy

Press Trust of India  |  New Delhi 

Arun Jaitley
Economic Survey 2014-15.

Global economic outlook appears to be "most favourable" since the 2008 financial meltdown and is likely to improve further on the back of plummeting crude oil prices coupled with sharp recovery in the US economy, says the Economic Survey 2014-15.

"Outlook for the external sector is perhaps the most favourable since the 2008 global financial crisis and especially compared to 2012-13, when elevated oil and gold imports fuelled a surge in the current account deficit," said the survey tabled in Parliament today..

Read our full coverage on Union Budget

"The global economic environment appears poised for a change for the better with recent sharp fall in the international prices of crude petroleum which is expected to boost global aggregate demand, and the sharp recovery in the US economy in the face of gradual withdrawal from monetary accommodation," it added.

Besides, the survey said that while India's trade and current account deficits are on even keel, the copious financial inflows in excess of financing requirement have helped shore up its foreign exchange reserves, which stood at $328.7 billion at end-January.

These have helped allay the vulnerability concerns that led to severe stress last year.

"These concerns, however, remain a potent downside risk, should the global environment deteriorate for some reason," the survey said.

India is the second largest foreign exchange reserve holder after Brazil among the major economies with current account deficit.

After the global crisis of 2008, the global economy came under a cloud of uncertainty and prolonged weakness in euro area particularly since 2011.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, February 27 2015. 14:48 IST
RECOMMENDED FOR YOU
.