HSBC, Nomura cut GDP forecast to 4-4.2% This, after Indian economy grew by lower-than-expected 4.4% in the June quarter Top foreign investment banks HSBC and Nomura have downgraded their Gross Domestic Product (GDP) growth estimates for India after the economy grew lower-than-expected in the June quarter. While HSBC cut its GDP estimates for the country to 4% from 5.5% in 2013-14, Nomura lowered its expectations to 4.2% from 5%, retaining its negative outlook for the economy over the next three to six months. “The risk of a pro-cyclical fiscal and monetary policy tightening is rising and the downside risks to our growth outlook have materialized with financial conditions tightening much more than anticipated,” said Sonal Varma, economist at Nomura in a client note. India grew at 4.4% in the first quarter (April-June) of 2013-14-- its slowest pace in four years—against 4.8% in January-March. HSBC said it does not expect to see signs of recovery till the fourth quarter of 2013-14. “Even then, the recovery is likely to prove protracted as confidence will only return reluctantly and the structural reforms will only pass through to growth very slowly,” said Leif Eskesen, chief economist for India and ASEAN, HSBC, in a client note. C
Posted on: Mon, 02 Sep 2013 04:46:37 +0000
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