SHINE OFF INDIA'S ECONOMY AS GLOOMY DATA PILES UP
AFP, August 17, 2008
NEW DELHI (AFP) — Until a few months ago, the most popular buzz phrase for India was "economic miracle", with the nation appearing impervious to the financial turmoil engulfing the developed world.
But now the "India story" is losing traction, with inflation at 13-year highs and economic expansion slowing, prompting an exit by foreign investors as gloomy warnings pile up.
"A number of factors inimical to growth have intensified," the government's Economic Advisory Council said last week, citing a world economy hit by the "twin onslaught" of the US subprime mortgage crisis and an oil price surge.
No country can "expect to emerge unscathed," it cautioned.
Inflation, currently at 12.44 percent, will "remain in double digits through 2008" as a result of the surge in oil and other commodity prices, said Goldman Sachs economist Tushar Poddar, who sees more monetary tightening to tame prices, which will brake domestic growth further.
Some economists forecast inflation, which has nearly tripled from a year ago, could hit at least 15 percent.
(...) [artículo aquí]
AFP, August 17, 2008
NEW DELHI (AFP) — Until a few months ago, the most popular buzz phrase for India was "economic miracle", with the nation appearing impervious to the financial turmoil engulfing the developed world.
But now the "India story" is losing traction, with inflation at 13-year highs and economic expansion slowing, prompting an exit by foreign investors as gloomy warnings pile up.
"A number of factors inimical to growth have intensified," the government's Economic Advisory Council said last week, citing a world economy hit by the "twin onslaught" of the US subprime mortgage crisis and an oil price surge.
No country can "expect to emerge unscathed," it cautioned.
Inflation, currently at 12.44 percent, will "remain in double digits through 2008" as a result of the surge in oil and other commodity prices, said Goldman Sachs economist Tushar Poddar, who sees more monetary tightening to tame prices, which will brake domestic growth further.
Some economists forecast inflation, which has nearly tripled from a year ago, could hit at least 15 percent.
(...) [artículo aquí]
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