India is projected to be the fastest-growing G20 economy in 2024, with a 7% GDP growth rate, outpacing other major economies like Indonesia (5%), China (4.8%), and Russia (3.6%). This strong performance is highlighted amidst the G20 summit in Brazil, focusing on global challenges.
India is projected to be the fastest-growing G20 economy in 2024, with a 7% GDP growth rate, outpacing other major economies like Indonesia (5%), China (4.8%), and Russia (3.6%). This strong performance is highlighted amidst the G20 summit in Brazil, focusing on global challenges.
The US economy grew at a robust 2.8% in the third quarter, but beneath the strong headline number, economists see diverging forces at play. While growth slowed from the previous quarter, strong consumer spending and a surge in defense spending fueled the expansion. Despite the positive GDP figures, economists remain cautious about the sustainability of growth and the Fed’s response to inflation.
A revised upward GDP growth for the second quarter has sparked debate about the need for a large rate cut by the Federal Reserve. The market now sees a smaller 25-basis-point cut as more likely. All eyes are on the upcoming PCE price index report, which could influence the Fed’s decision.
Wall Street experienced a surge on Thursday, fueled by a positive economic outlook. The U.S. economy grew by 3% in the second quarter, surpassing initial estimates, driven by robust household spending. Despite NVIDIA’s disappointing earnings report, the broader semiconductor sector soared, led by gains in Arm Holdings, Intel, and ON Semiconductor. Major indices like the Dow Jones, Nasdaq, and Russell 2000 all saw significant increases.
The Indian stock market is expected to open higher on Monday (June 3) after a five-day losing streak. The Lok Sabha elections exit polls have predicted a landslide victory for the BJP, while better than expected GDP data also came on Friday. The Sensex is likely to open around 350 points higher, while the Nifty may gain around 100 points.
This week, Plain Facts presents a compilation of data-driven insights into key events and trends shaping India. Despite the relentless heat and economic fluctuations, there are signs of growth in various sectors. In this round-up, we explore the severe heatwaves affecting India, the upcoming release of GDP growth figures, the rise in luxury home prices, a pilgrimage boom, increased loan support for states, surging rural expenditures, and sluggish auto sales. Additionally, our Chart of the Week highlights the increasing proportion of educated MPs in the Lok Sabha over the years.
Pakistan’s economy experienced a resurgence in the third quarter of the 2023-2024 financial year, with the gross domestic product (GDP) expanding by 2.09%. This growth is primarily attributed to a strong performance in the agriculture sector, aiding overall economic recovery. The agriculture sector recorded an impressive 6.25% growth, driven by bumper harvests in wheat, cotton, and rice. The robust agricultural performance offset slower growth in the industry and services sectors, both of which registered a modest 1.21% increase. Pakistan’s central bank has projected a real GDP growth of 2-3% for the current fiscal year 2024, indicating a positive economic outlook.
The US economy is expected to have experienced a slowdown in growth during the first quarter of 2023. Economists anticipate an annualized growth rate of 2.5%, down from 3.4% in the fourth quarter of 2022. This projection is based on the continued strength of consumer spending, a resilient labor market, and investments in nonresidential fixed investment and inventories by businesses. However, residential investment may have declined due to a decrease in multifamily homebuilding. Despite the expected slowdown, a strong labor market and pickup in manufacturing suggest the possibility of an upside surprise in GDP growth. However, market participants are hoping for a softer reading that could lead to earlier interest rate cuts. Strong GDP data could have positive implications for revenue growth but could also delay rate cuts.
The US economy grew at a slower pace in the first quarter of 2023, while inflation accelerated, according to estimates by the Commerce Department. Consumer spending remained strong, driven by a resilient labor market and pent-up demand. The economy is expected to continue growing above the Fed’s non-inflationary rate, but some economists caution that sentiment surveys indicate a potential slowdown later in the year. The Fed is expected to delay cutting interest rates until September despite the slowdown in economic growth.
