Goldman Sachs India or China as the world’s fastest growing major

Goldman: India or Chinese into the fastest super major economies in the world stock market development center: exclusive industry sector stocks, the main economic premarket after hours, ETF, real-time quotes of the world’s fastest growing body will continue to accelerate in the fiscal year 2016. This is the latest forecast by Goldman Sachs, which refers to India. In a recently released document, the India economy has been optimistic about Goldman Sachs pointed out that in fiscal year April 2016 (~2017 March), India’s economy is expected to grow 7.9%, more than last year’s $7.6%. Once the growth rate is achieved, it means that India will overtake China as the world’s fastest growing major economies. Chinese officials also expect economic growth to slow, setting a target of between 6.5% and 7%. Why so optimistic about the development of India’s economy in the next few months? Goldman Sachs gives four reasons. First, awesome God, the precipitation will increase by 6%. Agricultural country often depends on the weather, especially in countries with weak infrastructure. Irrigation infrastructure in India is relatively weak, which makes rainfall largely determine the level of income and consumption of agricultural economy and rural residents. Drought will raise food prices, thereby affecting the consumer price index. According to the India meteorological department forecast that this year’s rainfall will be higher than in previous years 6%. India GDP will also be due to the growth of agricultural GDP and the increase in the income of rural residents increased by 0.6~0.9 percentage points. India meteorological department, the latest news that rainfall will start from the last week of August this year, the impact of the India peninsula. Second, tens of millions of civil service wages rose by 14%, increased national purchasing power. At the end of June, the India government approved a plan to pay civil servants wages and pensions, the about 10000000 India civil servants and retirees will increase by 14%, is expected to make the India government increased nearly $17 billion in fiscal year 2017 (about 117 billion 200 million yuan) expenditure. Goldman Sachs expects this one-off move will increase the purchasing power of the nation, so that GDP increased by 0.3 percentage points. Third, fiscal and monetary policy mix.     according to Goldman Sachs, the combination of fiscal and monetary policy in India will provide a good environment for economic growth. In monetary policy, the Reserve Bank of India (RBI) in April will repurchase rate cut by 0.25 percentage points, down to 6.5%. Goldman Sachs believes that the policy interest rate cuts may lead to an increase in the credit needs of non leveraged households. Compared with the 2015-2016 fiscal year average of 15.7%, the first quarter of fiscal year 2017 retail loans has risen to more than 19%. The company’s loan growth is also gradually recovering, but the future will be limited to the public sector in India long-term non-performing loans and a large number of debt ridden companies. In the federal 2016-2017 budget announced earlier this year, the government of India will be allocated 878 billion rupees to the agricultural sector (about $13 billion 100 million and 1)相关的主题文章: