Paris-based research body Organization for Economic Cooperation and Development sees deterioration in developed world
GN Bureau | September 9, 2015
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.
After years of intense preparation, India is about to take the next step in information and communication technology. Prime Minister Narendra Modi will launch 5G services in India on October 1 and also inaugurate the 6th Edition of India Mobile Congress 2022 to be held till October 4, at Pragati Maidan, Ne
There is this popular saying that epics are never told, but always retold. Ramayana is one such epic and needs no introduction. Its plot is grounded in sacrifice and the end brings out hope that the good always wins. But how is a centuries-old tale of the prince of Ayodhya still relevant for today’s
In pursuance of the pro-people announcement made by the prime minister in 2021 and successful implementation of additional food security under PM Garib Kalyan Ann Yojana, the union cabinet has approved its extension for a further period of three months, from October to December 2022. At a ti
A Case of Indian Marvels: Dazzling Stories from the Country’s Finest Writers Edited by David Davidar Aleph, 390 pages, Rs 999 Change is the only constant, and India has always been doing so. Yet, after independence, if there was a year when the p
“My volume of business has increased ever since I registered on GeM (Government e-Marketplace) in 2017. Earlier, I could supply items only in the vicinity of my shop in Fort area and only within Mumbai. Now, I ship my products all over the country! I have tied up with India Post and three private cou
The Journey of Hindi Language Journalism in India: From Raj to Swaraj and Beyond By Mrinal Pande Orient BlackSwan, 188 pages, Rs 1,195.00 In India, the English-language media is considered the ‘national media’, while the language press