Resilient Demand Keeps Driving India’s World-Beating Growth
The economic toll from a deadly second wave of Covid-19 that swept India last quarter doesn’t seem as bad as feared, with analysts still pushing the country away from the world’s fastest growth this year. Have seen doing
Better-than-expected manufacturing performance and a modest hit to services, coupled with a strong pick-up in vaccination, have helped hold the annual growth outlook for the economy steady at 9.2%, according to a Businesshala survey. This pace was observed in a survey last month and is the fastest among major economies.
Rahul Bajoria, Chief India Economist at Barclays Bank Plc, said, “The economic loss appears to be lower than previously thought.” “With the second outbreak being brought under control, a rapid recovery is underway,” he said.
Data due later Tuesday will show GDP grew 21% in the three months to June from a year earlier, according to a middle of 45 projections compiled by Businesshala, mainly as a bounce back from last year’s crash. happened.
However, the big pop would obscure the prospect of a slowing down from last quarter, as curbs on activity would have to stop a second wave of the virus. While the government does not report official quarter-on-quarter figures, Businesshala Economics estimates that the economy contracted 12% sequentially from the January-March period.