HSBC pegs Q1 GDP growth at 6%
Foreign brokerage HSBC today estimated GDP growth slowing down to 6 per cent for AprilJune period, as against the 6.1 per cent in the preceding quarter, but said GVA growth should be the number to watch from here. “Repercussions of an early Budget and the newly implemented Goods and Services Tax (GST) rates, receipts and rebates are likely to distort upcoming GDP readings...It’s a good idea to focus on GVA (gross value added) growth over GDP growth,” it said in a note. The GVA growth will accelerate to 6.2 per cent for the April-June period year-on-year, up from the 5.6 per cent in the preceding March quarter, which saw negative impact of demonetisation. It was, however, quick to add that despite the higher number, the 6.2 per cent GVA growth is “soft”.
Rescue personnel drive past a pickup truck abandoned in floodwaters in Dickinson, Texas. Estimates of the damage caused by Hurricane Harvey are climbing with the storm regaining strength in the Gulf of Mexico and making landfall again BLOOMBERG