India: Growth setback - ANZ

Sandeep Kanihama FXStreet Contributor

According to analysts at ANZ, the change in high-frequency indicators now vis-à-vis six months ago for the Indian economy are pointing to broad-based weakness in the economy, warranting a downgrade to their growth forecasts.

Key Quotes

“We have thus revised lower our GDP growth forecast to 6.9% for FY19 (ending March 2019) and 6.8% for FY20 (from 7.0% and 7.1%, previously). For Q4 FY19, we estimate GDP growth to slow to 6.2% y/y compared with 6.6% in the previous quarter.”

“At the component level, general economic activity and consumption related indicators have materially weakened whereas investment-related indicators are holding up relatively better.”

“We believe that a broad-based response both from policy rate cuts and a further easing of liquidity conditions is essential to stem this slowdown.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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