Momentum with India as world economies face slow down

Paris-based research body Organization for Economic Cooperation and Development sees deterioration in developed world

GN Bureau | September 9, 2015


#paris   #oecd   #organization for economic cooperation   #us   #uk   #china   #Russia  

India is expected to see ‘firming growth’ while growth is set to slow across a number of the world’s largest economies, including China, the US and the UK, according to leading indicators released yesterday by the Organization for Economic Cooperation and Development.

The Paris-based research body said its gauges of future economic activity—which are based on information available for July—also point to slowdowns in Canada, Russia and Brazil. The readings are based on Composite Leading Indicators (CLIs) that are designed to anticipate turning points in economic activity relative to trend.

"In India, the CLI points to firming growth... on the other hand, the outlook continues to deteriorate for China, with the CLI pointing more strongly to a loss of growth momentum," OECD said in a statement.

India's CLI stood at 99.8 in July, slightly higher than 99.7 seen in June. OECD, which is also a grouping of mostly developed nations, noted that signs of slowing growth momentum have re-emerged in Russia while Brazil is expected to witness weak growth momentum. India's economic growth slowed to 7 percent in the three months ended June compared to 7.5 percent expansion recorded in the January-March quarter.

International Monetary Fund (IMF) Managing Director Christine Lagarde recently said that India is among the few bright spots in the global economy.

The continuing slowdown suggested by the leading indicators would spell another disappointing year for the global economy, which has struggled to recover from the effects of the 2008 financial crisis.

The OECD said on Tuesday that its leading indicators suggest the eurozone economy will avoid a slowdown, and signal a pickup in France, which has lagged behind other members of the currency area.

The most pressing concern for G-20 policy makers is the outlook for the Chinese economy, amid signs that an expected slowdown may turn out to be sharper than expected. The OECD’s leading indicator for the world’s second-largest economy fell again in July, to 97.6 from 97.9. A level below 100 signals a slowdown, while a level above signals an acceleration. Those worries have already led to turmoil in global financial markets.

A sign of further slowdown in global economic growth poses a challenge for central bankers, who have seen inflation rates fall far short of their targets in recent years, with a slide into deflation threatening as oil prices once again tumble.

The European Central Bank last week signaled it is prepared to expand its already massive bond-buying program, underscoring an increasing divergence in the monetary policies of the world’s largest central banks.

But the OECD’s leading indicators suggest the eurozone economy will avoid a slowdown and signal a pickup in France, which has lagged behind other members of the currency area. In a statement Tuesday, the European Union’s statistics agency raised its figures for eurozone economic growth in both the first and second quarters.

The OECD’s leading indicators are designed to provide early signals of turning points between the expansion and slowdown of economic activity, and are based on a wide variety of data series that have a history of anticipating swings in future economic activity.

The OECD’s composite leading indicator for its 34 members fell to 100 in July from 100.1 in June.

Comments

 

Other News

BJP will win all 26 LS seats from Gujarat in 2019: Vijay Rupani

Gujarat chief minister Vijay Rupani has claimed that the BJP will win all 26 Lok Sabha seats in the state in 2019 polls, thus repeating the 2014 general elections victory. Rupani was interacting with a group of reporters in Gandhinagar on Wednesday. Confident of the BJP’s win, Rupani denied C

Mumbai development plan 2034: Citizens, experts raise concerns

A public meeting was organised by the Urban Design Research Institute (UDRI) in Mumbai to discuss the concerns of citizens and urban planners on the recently released Mumbai development plan (DP) 2034.   The citizens and experts have expressed concerns regarding the shortage of time to

Actor Denzil Smith talks about his love for stage and more

Denzil Smith is a stage and film actor who has featured in several Indian and international productions that have achieved both critical and commercial success. Gurinder Chadha’s Viceroy’s House was based on partition in which he played the role of Jinnah. He also appeared in The Lunchbox a

Can the JD(S)-Congress combine give stable government in Karnataka?

Can the JD(S)-Congress combine give stable government in Karnataka?

Making palliative care child’s play

Sneha Sena is a unique attempt to integrate education and healthcare by bringing school children into the field of palliative care. In Kerala’s Alappuzha district, a government medical officer has decided to create an army of student volunteers to be part of the government’s pain

An African salient

To counter Beijing’s aggressive agenda in the Indian Ocean, New Delhi is seeking to create strategic bastions in Mauritius, Seychelles and Madagascar. The immediate provocation was China’s inauguration of its first overseas military base in Djibouti, in the Horn of Africa.

Current Issue

Current Issue

Video

CM Nitish’s convoy attacked in Buxar

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter