Rating agencies far from India's ground realities: Shaktikanta Das
PTI Upset over not getting a rating upgrade, India has lashed out at global rating agencies saying they are far detached from ground realities and must introspect as the reforms initiated certainly warranted an upgrade. Economic Affairs Secretary Shaktikanta Das said India was being denied an upgrade even as growth and fundamentals improve. In past too, India has questioned the methodology used by global rating agencies saying the nation compares favourably with other emerging countries on metrics such as default risk. In particular, it points to S&P Global Ratings keeping China at AA- despite rising debt and slowing growth while India has been kept at one step above junk. Moody's and Fitch too give similar rating citing ...
Chinas manufacturing growth contracts in December
The Dollar Business Bureau China’s manufacturing sector registered a sluggish growth in December, giving a sign that the government’s initiatives to control the escalating asset prices have started to reflect on the Chinese economy. The country’s Purchasing Managers' Index (PMI), an indicator of the health of the country’s manufacturing sector, fell marginally to 51.4 in December as against 51.7 in November. December reading of the PMI was slightly below than the country expected. The government’s increased spending on the country’s infrastructure, supplemented by a housing boom during the second half of last year, has helped boost domestic prices for essential commodities such as cement and steel, thereby giving a much-needed fillip to the manufacturing sector. Meanwhile, the Chinese government is also cracking down on property ...
China's GDP grows 6.7% in Q3 on account of govt spending, property boom
The Dollar Business Bureau In line with the Chinese government and industry expectations, China’s economy expanded at 6.7% in the third quarter from a year earlier, as the increased government spending and real estate boom balanced out weak exports. Real estate investment growth registered a slight growth during January-September period, as it grew by 5.8% compared to 5.4% over the first eight months of the last year. Despite a significant growth, the market is wary of the sector’s future growth rate owing to real estate price surge. Several analysts earlier predicted that China’s economy was stabilizing and expanding at the same pace as it did in the first and second quarters of the current financial year and is in line with the ...
IMF trims India's GDP to 7.4 per cent for 2016-17
Source: PTI The IMF slightly trimmed India's growth projections to 7.4 per cent for 2016 and 2017, a drop of 0.1 per cent from its previous forecast, attributing it to a more sluggish investment recovery while declaring Brexit as a "spanner" in the global economic recovery. The global lending agency also said that Brexit has resulted in global economic uncertainty. "The outcome of the UK vote, which surprised global financial markets, implies the materialisation of an important downside risk for the world economy. As a result, the global outlook for 2016-17 has worsened, despite the better-than- expected performance in early 2016," the IMF said in its latest update if the World Economic Outlook. Updating its growth projection from the one ...
Chinas market expands at slower pace in Q1
The Dollar Business Bureau The growth of Chinese economy in the first quarter of 2016 expanded at a much slower pace, ever since the sluggish phase was witnessed in 2009. However, the clouds of recovery in investments, factory activity and household spending appeared above the world’s most populated nation, due to the sanction of new credits. The official report, on Friday, revealed that China’s GDP expanded at the rate of 6.7% in the first quarter, slightly down from 6.8% recorded in final quarter of 2015. However, on the brighter side, the other factors like new loans, industrial outputs, retail sales and fixed assets investment hint that they have fared better than the forecast rates. The analysts claim that data hints towards the improvement of ...
