India’s economy likely picked up in Sept quarter before Omicron spread

Author of the article: NEW DELHI — Data was expected to show that India’s economic recovery strengthened in the July-September quarter, helped by a pick-up in consumer spending, though the spread of the Omicron coronavirus variant raised fears for the future. Asia’s third-largest economy has been seeing a rebound from last year’s deep slump, boosted…
India’s economy likely picked up in Sept quarter before Omicron spread

Author of the article:

NEW DELHI — Data was expected to show that India’s economic recovery strengthened in the July-September quarter, helped by a pick-up in consumer spending, though the spread of the Omicron coronavirus variant raised fears for the future.

Asia’s third-largest economy has been seeing a rebound from last year’s deep slump, boosted by rising vaccination rates and a pick-up in government spending.

A Reuters survey of 44 economists projected GDP data – due out at 1200 GMT on Tuesday – will show 8.4% year-on-year growth in the September quarter, the fastest pace among major economies, vs a 7.5% contraction in the same quarter last year.

But as the market awaited the figures, health authorities said they were tightening testing at airports, in the wake of the spread of the Omicron variant. Prime Minister Narendra Modi on Saturday ordered a review of plans to ease travel curbs.

Fast-moving indicators including exports, electricity generation, rail freight and bank deposits showed improving signs of growth momentum in October while vehicle sales, fuel sales and tax collection showed slower growth.

Private economists have said economy is on the cusp of recovery helped by a resilient farm sector growth, but risks included slowing global growth, rising manufacturing prices as well as new variants of COVID-19.

“COVID risks have resurfaced globally and (these need to be watched) for implications for the timing of monetary policy normalization,” Shubhada Rao, economist at Mumbai-based QuantEco Research, said.

The Reserve Bank of India (RBI), which has cut key interest rates to record lows and infused massive liquidity to shore up economy, is widely expected to suck out liquidity before normalizing rates amid growing inflationary concerns.

RBI has forecast annual growth of 9.5% in the current fiscal year. (Reporting by Manoj Kumar; Editing by Andrew Heavens)

Financial Post Top Stories

Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.

By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300

Read More

Total
0
Shares
Leave a Reply

Your email address will not be published.

Related Posts
Oil prices hit lowest since Ukraine invasion amid recession fears
Read More

Oil prices hit lowest since Ukraine invasion amid recession fears

Author of the article: LONDON/NEW YORK — Global oil prices dropped on Thursday to their lowest levels since before Russia’s February invasion of Ukraine, as traders fretted over the possibility of an economic recession later this year that could torpedo energy demand. Benchmark Brent crude futures settled down $2.66, or 2.75%, at $94.12, the lowest…
Brazil markets tumble on Lula’s first full day in office
Read More

Brazil markets tumble on Lula’s first full day in office

BRASILIA — Brazilian markets delivered a withering verdict on leftist President Luiz Inacio Lula da Silva’s first full day in office on Monday, after he pledged to prioritize social issues and ordered a budget-busting extension to a fuel tax exemption. Lula’s decision to extend the fuel tax exemption, which will deprive the Treasury of 52.9…
Oil CEOs Warn That High Prices Jeopardize Energy Transition
Read More

Oil CEOs Warn That High Prices Jeopardize Energy Transition

Author of the article: Bloomberg News Kevin Crowley and David Wethe (Bloomberg) — High fossil-fuel prices may jeopardize efforts to pivot to cleaner renewable energy sources, the leader of one of Europe’s largest oil companies warned. A prolonged period of elevated prices for fuels such as natural gas “might jeopardize the development” of alternatives, TotalEnergies…