Latest from recession
- Downcast earnings reports from retailers have heightened worries about consumer resilience at a time of rising interest rates, surging energy prices, China lockdowns and the Ukraine war.
Surveys from RBI this month showed that consumers perceived the current economic situation as being better than it was in November when a similar survey was conducted.
- Because of the November fall, the economy is set to contract again in the fourth quarter.
Fitch said the slump in FY21 growth was mainly due to a projected fall in consumer spending to just 0.3 per cent in FY21 from 5.5 per cent a year back and a 3.5 per cent contraction in fixed investment.
Covid-19 update:The report, however, did not give a detailed explanation as to why and how India and China will be the exceptions as the world faces a recession and loss in global income that will impact developing countries.