Sunday, June 10, 2007

India needs a period of slower growth

India's economy | Waiting for the monsoon |

This is not to deny that India's economic speed limit has increased, to perhaps 7-8%, thanks to stronger investment and economic reforms. But growth has exceeded that limit. The economy still shows alarming symptoms of overheating, such as soaring house prices, credit growth of 28% over the past 12 months and 15%-plus average rises in wages for skilled workers. Industrial capacity utilisation has risen to a record high, and rampant domestic demand sucked in 41% more imports than a year ago in April, pushing the trade deficit to a record level.

Saturday, April 14, 2007

IMF forecasts slowdown of Indian economy

IMF forecasts slowdown of Indian economy : economic growth, GDP, IMF, slowdown : : CNN-IBN

The Economic Outlook points to a global economy that expanded vigorously in 2006, growing by 5.4 per cent while the economy of the United States slowed in the face of headwinds from a sharp downturn in the housing market.