Some countries are out of the woods. Early signs of economic recovery from crisis have been predicted. International Monetary Fund has made periodic forecasts of economic growth, both for the global economy as well as individual nations, which tend to maintain the slow yet upbeat growth showing robust optimism. The world Economy is expected to make a turnaround with an anticipated growth of 4.6% in 2010. Periodically, IMF has been maintaining that the growth for 2010 was indicated as 2.5% (in June 2009), raised it to 3.9% (in January 2010), 4.2% (in April 2010) and 4.6% (end June 2010). Economic growth continues to be uneven. Gone are the days when the world economic growth witnessed fast recovery, the so called ‘V’ shaped recoveries. Today, at best, we can term it as double dip ‘M’ recovery. One emerging outcome of the crisis triggered economy is that China and India are leading the recovery, when the advance economies are trailing. The problem of correcting this looming imbalance remains. The lack of congruence in the objectives of the rich and developed economies is due to the inborn traits of the economy of these two distinct economies.
A severe debt crisis in certain European countries is blowing hot and cold. A sovereign default by Greece will have serious far-reaching negative consequences for the global financial sector, since European and American banks hold a high proportion of bonds issued by Greece. One of the advanced economies United Kingdom is on a fast track fiscal consolidation programme.
One of the outcomes of the economic meltdown and its subsequent easing is that India has emerged unscathed, even though a few showers of the impact were felt here and there. Indian Banks performed well during the economic holocaust. Exports were not commendable but not bad. Market recovery was both good and bad. Even agriculture growth which we had written off proved our economists wrong and posted a positive growth though in decimals. IMF has improved India’s economic growth rate to 9.4% up from 8.8% made in April. Even though the most optimistic economist in India predicts that the growth may be overall 8.5%, RBI and Planning Commission are prepared to mark up their figures. Tax collections have been buoyant, manufacturing sector is on a V shaped growth Overall growth has been on predicted lines. Inflation continues to be a cause of worry, and infrastructure growth continues to be below mark which is adding to transaction costs.
With Rupee more stable against the Dollar, show that it has gained maturity and the time for Rupee Convertibility in the Capital markets. We should get offensive if we need to break new grounds in the world economy. Optimistic pessimism is better tackled by being confident. The time is ripe now to grow out of the mindset of caution to aggressive postures. Markets won’t wait. We need to overpower markets with our prowess.
A severe debt crisis in certain European countries is blowing hot and cold. A sovereign default by Greece will have serious far-reaching negative consequences for the global financial sector, since European and American banks hold a high proportion of bonds issued by Greece. One of the advanced economies United Kingdom is on a fast track fiscal consolidation programme.
One of the outcomes of the economic meltdown and its subsequent easing is that India has emerged unscathed, even though a few showers of the impact were felt here and there. Indian Banks performed well during the economic holocaust. Exports were not commendable but not bad. Market recovery was both good and bad. Even agriculture growth which we had written off proved our economists wrong and posted a positive growth though in decimals. IMF has improved India’s economic growth rate to 9.4% up from 8.8% made in April. Even though the most optimistic economist in India predicts that the growth may be overall 8.5%, RBI and Planning Commission are prepared to mark up their figures. Tax collections have been buoyant, manufacturing sector is on a V shaped growth Overall growth has been on predicted lines. Inflation continues to be a cause of worry, and infrastructure growth continues to be below mark which is adding to transaction costs.
With Rupee more stable against the Dollar, show that it has gained maturity and the time for Rupee Convertibility in the Capital markets. We should get offensive if we need to break new grounds in the world economy. Optimistic pessimism is better tackled by being confident. The time is ripe now to grow out of the mindset of caution to aggressive postures. Markets won’t wait. We need to overpower markets with our prowess.
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