India: The world’s fastest growing major economy - NAB

Research Team at NAB, notes that the Indian economy expanded by 7.9% over the year to March quarter 2016. India is now the world’s fastest growing major economy.

Key Quotes

“This was a consumption-led story, with consumption contributing 4.9%, or 62% to the overall outcome. Services (primarily financial, trade, professional and business services) was the best performing industry sector.

The high statistical discrepancy does raise some concerns about the quality of the data release.

Industrial production is forecast to accelerate to around 5% by the second half of the year; it is currently flat. Equity markets have recently reached a 2016 high, assisted by strong growth in corporate profits.

NAB Economics is forecasting 7.7% growth in 2016 and 2017. A further 25bp cut is expected in the Repo rate in the December quarter, bringing it down to 6.25% by end-2016.”