Page 23 - Economic Growth

Roaring back from pandemic, Japan's economy grows by 6% in April-June

Japan's economic growth jumped at an annual pace of 6% in the April-June period, marking the third straight quarter of growth as exports and inbound tourism recovered. Real gross domestic product, which measures the sum value of a nation's products and services, grew 1.5% in the fiscal first quarter for the world's third largest economy, the Cabinet Office said Tuesday. The annualized pace shows what the growth would have been if what was marked during the quarter had continued for a year. The rate outpaced what analysts had forecast at 3.1% growth. The latest quarter showed the strongest growth since October-December 2020, when Japan's GDP grew 1.9% on-quarter, and 7.9% annualized rate. Exports grew 3.2% in the three months through June, according to the government. Auto exports have grown lately, after a period in which they had stalled on the shortage of computer chips and other parts. Production was crimped because of social restrictions related to the COVID-19 pandemic. Also

Brazil's Lula unveils $200 bn infra plan as sceptics warn on spending spree

Brazilian President Luiz Incio Lula da Silva on Friday unveiled a plan to spend 1 trillion reais (nearly $200 billion) on infrastructure, energy and transportation over the next four years, part of a larger effort to boost economic growth and employment in Latin America's largest nation. The Growth Acceleration Program, known under its Portuguese acronym PAC, has been met with scepticism from analysts and investors, who say previous, similarly ambitious programmes have included projects that never saw the light of day and opened the door to vast corruption schemes. Funding included in this year's PAC is expected to go towards infrastructure projects including new highways and ports as well as energy efficiency and urbanisation programmes in slums. More than a public investment portfolio, the new PAC is a collective compromise (...) born out of many conversations with governors and mayors," Lula said at an event in Rio de Janeiro attended by government ministers, state governors and

UK heads for 5-yr of lost economic growth as goal to 'level up' fails

The forecasts echo the Bank of England's gloom, which said last week that GDP would remain below pre-pandemic levels "in the medium term"

The Global South quietly revising economic rules written by US, West

The Global South sees a chance to chart its own future. Nirupama Menon Rao, a former Indian foreign secretary, points to her country's spreading of digital payments to developing nations

China or India? Where should investors put their money in coming Asia boom

Goldman Sachs Group Inc. analysts expect India's share of global equity market capitalisation to quadruple between now and 2075-reaching 12 per cent, when it will be neck and neck with China's

PM's 'guarantee', cyclists, and the challenge of long-run economic growth

The important question is whether India can also get rid of multi-dimensional poverty - a modest concept that stipulates a bare-bones minimum income, education and quality of life, writes T N Ninan

India GDP to grow 6-6.3% in FY24, economic prospects brighten: Deloitte

India is likely to grow 6-6.3 per cent in the current fiscal year ending March 31, 2024, Deloitte India said in its economic outlook, forecasting growth surpassing 7 per cent over the next two years if global uncertainties recede. With the probability associated with a recession in major industrial countries this year trimming, several economic indicators such as the tight labour markets and reduced risk spreads post the US banking crisis suggest that downside risks to global growth are subsiding. Yet, there remain significant uncertainties around the actions of the central banks of major economies and the oil price movements, the economic outlook said. "Amid continuing global uncertainties, India continues to see strong economic activity," it said. "Keeping in view the resilience shown by the economy, Deloitte is optimistic about the outlook and has put out its expectation for this year and the next. Deloitte expects India to grow between 6 per cent and 6.3 per cent in FY 202324, a

Stock markets and economic growth have little correlation, says Mukherjea

Saurabh Mukherjea tells that regardless of what happens to the global economy, this post-pandemic stock market rally will continue

Missing the real achievements: Why India needs introspection, not bluster

Neither is India the fastest-growing large economy any longer, nor the prime beneficiary of 'China Plus One', but it is surely a key emerging player with a market larger than others, notes T N Ninan

Citigroup downgrades US stocks amid recession risks, upgrades Europe

Strategists at the brokerage downgraded UK stocks on a lack of exposure to growth stocks and a stronger pound

China's premier says economic growth accelerating, can hit its 5% target

China's No. 2 leader said Tuesday that economic growth accelerated in the latest quarter and expressed confidence it can hit the ruling Communist Party's official target of 5 per cent for the year. Premier Li Qiang, speaking at a conference in the eastern city of Tianjin, gave no figure for the three months ending in June but said it was faster than the previous quarter's 4.5 per cent. The world's second-largest economy rebounded from 2022's unusually weak 3 per cent growth following the end of anti-virus controls on travel and business activity. But that faded faster than expected. Consumer and factory activity weakened in May and record-setting youth unemployment spiked up. It is expected that the second quarter will be faster than the first quarter, Li said at the World Economic Forum. We expect to achieve the economic growth rate of about 5 per cent determined at the start of the year. Private sector forecasters expect China's economic output to grow by at least 5 per cent this

6.5% is below our potential or desirable rate of growth: Ashima Goyal

'The real repo rate is still in an acceptable band around one'

UTI Flexi-Cap will perform when there’s reversal from value to growth

UTI Flexi-Cap has underperformed in recent times. In this interview, Ajay Tyagi, Head of Equities, UTI Mutual Fund explains to Sanjay Kumar Singh, Associate Editor, Business Standard.

Pak Army chief assures full support to Sharif's economic revival plan

COAS, General Asim Munir, has assured the Armys all-out support to complement the governments efforts to deal with the economic challenges facing the country, media reports said

Rs 2,000 note withdrawal can boost growth by pushing consumption: Report

The Rs 2,000 note withdrawal decision and response to it so far suggest that the move can help boost FY24 GDP growth to beyond 6.5 per cent estimated by the RBI, a report said on Monday. The real GDP growth for the first quarter of FY24 will come at 8.1 per cent with an upward bias and the Reserve Bank of India's 6.5 per cent estimate can also be exceeded, economists at the country's largest lender SBI said. "We expect Q1 FY24 GDP growth at 8.1 per cent with an upward bias due to the impact of Rs 2000 note withdrawal event...this reinforces our projection that FY24 GDP could be higher than 6.5 per cent, basis the RBI estimate," a note said. It can be noted that earlier this month, the RBI informed that over half of the currency notes in the denomination have returned back, with 85 per cent of it coming as deposits into banks, while the remaining 15 per cent have been exchanged at bank counters. Based on this experience, the SBI note said the consumption can get a Rs 55,000 crore bo

FPIs stay glued to Indian equities; infuse Rs 16,405 cr in June so far

Foreign portfolio investors (FPIs) continued to invest in Indian equities for a fourth straight month as they injected Rs 16,405 crore in June so far on the country's strong economic rebound and positive growth outlook. FPI flows touched a nine-month high of Rs 43,838 crore in equities in May, Rs 11,631 crore in April, and Rs 7,936 crore in March, data with the depositories showed. Before that, FPIs had pulled out over Rs 34,000 crore during January-February. "Considering the current investment trend, it is expected that FPIs will continue to show interest in the Indian market throughout the month," Mayank Mehraa, Smallcase manager and principal partner at financial consultancy Craving Alpha, said. The ongoing economic recovery, positive corporate earnings, and supportive policy environment are likely to sustain the inflow of funds, he added. However, valuation could become a concern as Indian markets continue to surge and stricter regulatory norms could also check foreign money .

UAE-India CEPA deal paying off on every economic front: UAE Min Al Zeyoudi

The landmark UAE-India Comprehensive Economic Partnership Agreement (CEPA) is paying off on every economic front, with the benefits of its integration far broader than just trade, Dr Thani Al Zeyoudi, the UAE Minister of State for Foreign Trade, said on Tuesday. India and the UAE inked CEPA on February 18 last year to boost trade ties following a virtual summit between Prime Minister Modi and Crown Prince of Abu Dhabi Sheikh Mohammed bin Zayed Al Nahyan. India has been given certain duty concessions on the import of gold from the UAE under the CEPA. The agreement was officially implemented on May 1 last year. "Indian business owners have been spurred to pursue new opportunities in the UAE since the deal was signed, with 11,000 new companies registering with the Dubai Chamber of Commerce in 2022, bringing the total to more than 83,000," Al Zeyoudi wrote in the Dubai-based Gulf News newspaper. There is little question that the CEPA will come to be regarded as a significant milestone

India economy performing strongly despite global slowdown: J P Nadda

BJP president J P Nadda on Tuesday asserted that the Indian economy is moving ahead strongly despite adverse global circumstances as he cited the retail inflation of 4.25 per cent and growth rate of 7.2 per cent to laud Prime Minister Narendra Modi-led government's performance on the economic front. He said at a time when many developed countries have been facing economic adversities amid a slowdown following the Covid pandemic, the Indian economy has been growing and doing well. Food prices have been declining and retail inflation has been on a downward curve, he said. The Indian economy has grown to be the fifth largest in the world, he noted in a statement. At a press conference here, BJP national spokesperson Gopal Krishna Agarwal said the Indian economy has also become an engine of growth for the global economy due to the "concerted and visionary efforts" of the government. Agarwal said India's gross domestic product (GDP) has increased to 3.75 trillion dollars from around 2

GDP growth for FY 2023 was 7.2%, surpassing expectations, says CEA

The Chief Economic Advisor to the Government of India, Dr V Anantha Nageswaran, on Monday said the real GDP growth for the year ending March 2023 was 7.2 per cent, which surpassed expectations, as the underlying momentum in the economy was quite strong. During an interaction with the Industry, organised by the Associated Chambers of Commerce and Industry of India (ASSOCHAM) here, Nageswaran explained the current state of the Indian economy and said the government was optimistic about its medium-term performance. Addressing the gathering, he said while goods exports were on the weaker side in 2022-23 due to the war in Ukraine and oil price rise, services exports did very well for the country. "We have a good story to share about the Indian economy. The real GDP growth for the year ending March 2023 was 7.2 per cent, surpassing expectations. The underlying momentum in the economy is quite strong. We expect the final number to be even higher than 7.2 per cent," Nageswaran said. He ...

Multi-pronged policy action needed to reignite, sustain growth: RBI Dy Guv

Reserve Bank Deputy Governor M D Patra has pitched for a multi-pronged policy response to reignite and sustain productivity and growth at a time when multiple factors which can influence the economy are at work. The policy response has to be powered by technological capital deepening, accompanied by long-term investment in research and development to nurture a competitive innovation ecosystem, skill development through sustained educational attainments and training, and building up the physical infrastructure, he said. Emerging Markets and Developing Economies (EMDEs) need to leverage the potential of the services sector to drive productivity growth, he said in his inaugural address at the Sixth Asia KLEMS Conference on Sunday at Lonavala. Investing in ICT infrastructure, securing reduction in trade costs like those associated with shipping, logistics and regulation and supportive business-enabling reforms could help to engage the private sector in partnering in this endeavour, he .