India’s economic growth is expected to slow further in 2019: DBS Bank

DBS Bank

DBS BankIndia’s economic growth is expected to slip further in the second half of 2019, said Singapore’s DBS Bank on Monday.

“The Real GDP is likely to print 4.3 per cent YoY in 3Q vs 2Q’s 5 per cent, nearing the trough for this cycle,” revealed DBS in its daily economic report.

Weak spots in the crucial consumption sector are most likely to be stretch into the quarter along with moderate private sector activity.

Surveys conducted by the Reserve Bank of India (RBI) reveal subdued consumer sentiments towards income and employment conditions.

Indirect and direct tax collections also reflected less demand, as did slow credit growth as banks and non-banks tightened due diligence, it said.

Providing a little support, fiscal spending likely improved after slower disbursements in the first half of the year due to the general elections.

Net trade is unlikely to be a drag with weak exports accompanied by a sharper fall in non-oil, non-gold imports.

“Under GVA (Gross Value Added), we expect 4.1 per cent print, with most sectors barring public administration to have slowed in the quarter,” said DBS Bank.

The third-quarter economic numbers are likely to be released to be this week.

"Exciting news! Elets Banking & Finance Post is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest insights!" Click here!

Elets The Banking and Finance Post Magazine has carved out a niche for itself in the crowded market with exclusive & unique content. Get in-depth insights on trend-setting innovations & transformation in the BFSI sector. Best offers for Print + Digital issues! Subscribe here➔

Get a chance to meet the Who's who of the Banking & Finance industry. Join Us for Upcoming Events and explore business opportunities. Like us on Facebook, connect with us on LinkedIn and follow us on Twitter, Instagram & Pinterest.