Decreased Private Demand Slows Economic Growth, Suggesting Policy Changes
In line with RBI's projection but below the mainstream opinion of experts, GDP for the third quarter (October-December) of 2022-23 was Rs 40.19 lakh crore, up by 4.4%. Even if GDP revisions for the prior quarter and fiscal year are ignored, data from the third quarter still offers alarming signals about the rate at which the economy is losing steam. In the face of rising interest rates, the positive effects of a return to normalcy in the economy have had a chilling effect on private consumption. In addition, against the backdrop of a worldwide economic recession, manufacturing has decreased for the second consecutive quarter. In the third quarter, private consumption spending increased by 2.1% to Rs 24.77 lakh crore. When compared to the prior quarter (July-September), this one saw ...
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