Key Points
Goldman Sachs Group Inc. has lowered Indias growth forecast by 20 basis points each for this year and the next, citing a contraction in central government expenditure...
The current years downgrade factors a 35% year-on-year contraction in government expenditure during the April-June quarter that coincided with the weeks-long general election, the US banks economist led by Santanu Sengupta wrote in a report Friday...
Expansion will also face headwinds from slower real consumption growth, driven by a slowdown in household credit due to the Reserve Bank of Indias stricter rules to control unsecured lending by banks, the economists said...
However, easier monetary policy may offset some of the drag on real GDP growth next year as Goldman Sachs expects the RBI to start its easing cycle in December 2024..
You might be interested in
Indian government's dividend income from RBI in FY25 to be similar to FY24, source says
26, Feb, 24RBI dividend: The Indian government expects dividend income from the Reserve Bank of India to remain consistent with last year. A surplus of 874.16 billion rupees was transferred to the government for fiscal year 2022/23, with a projected surplus transfer of 1.02 trillion rupees for fiscal year 2025. The government will review its borrowing requirements to potentially reduce them.
Budget 2024: 5 essential questions for investors answered by Goldman Sachs
12, Jan, 24Budget 2024: Goldman Sachs in their report answers five key investor questions before the India Union budget for fiscal year 2025. They expect the government to meet the FY24 fiscal deficit target of 5.9% of GDP and expect the government to announce a fiscal deficit target of 5.2 - 5.4% of GDP FY25
US bank bosses predict soft landing as consumers stay resilient
05, Dec, 23U.S. bank chiefs expressed more confidence in the economic outlook for 2024 after consumers and businesses showed surprising strength this year.
Barclays, Citi raise India’s economic growth closer to 7% after GDP boost
01, Dec, 23India Business News: India's economy outperformed expectations in the last quarter, leading economists to raise their full-year projections. Barclays and Citigroup have in
Govt may prune FY25 fiscal gap target to 5.3-5.4% on slower capex
28, Jan, 24India's fiscal deficit target for FY25 is expected to decrease significantly in line with post-Covid consolidation plans, potentially dropping to a range of 5.3-5.4% of GDP from the current year's 5.9%. Despite a slowdown in capital asset investments, gross market borrowing is anticipated to remain high, with estimates for FY25 around ₹15.3 lakh crore. The reduction in the fiscal deficit target is attributed to a slower pace of capital expenditure, providing room for consolidation. The government is committed to lowering the fiscal deficit to below 4.5% of GDP by FY26.
Job cuts, lean bonuses loom over Europe's bankers in 2024
03, Dec, 23A mix of global economic unease and geopolitical uncertainty means optimism is in short supply among bankers from the City of London to Frankfurt's 'Mainhattan' financial district.
Monetary policy: RBI on tight rope to balance between inflation, economic growth; 25% bps rate hike in offing
05, Apr, 23Since May last year, RBI has hiked the repo rate six times in a row -- taking the total hike to 250 bps. The repo rate has shifted from 4% to a four-year high of 6.50%.
India’s economic mosaic – what do the big bang macro data releases say?
27, Feb, 24For the Indian economy the number one unknown risk – that of an unexpected adverse weather event – looms. An unusual weather event, if at all, can rev
Govt confident of meeting FY24 fiscal deficit target, committed to lowering it to 4.5% by FY26: Ajay Seth
29, Nov, 23The government expects higher non-tax revenues, including dividends from the RBI and state-run banks, to offset any revenue shortfall from disinvestment