World Economics Forum

Standard Chartered forecasts the top 10 countries in the world by purchasing power parity GDP in 2030. 1. China: $64.2 trillion 2. India: $46.3 trillion 3. US: $31 trillion 4. Indonesia: $10.1 trillion 5. Turkey: $9.1 trillion 6. Brazil: $8.6 trillion 7. Egypt: $8.2 trillion 8. Russia: $7.9 trillion 9. Japan: $7.2 trillion 10. Germany: $6.9 trillion The China, US, Japan and Germany forecasts seem somewhat reasonable. I do not see how most of the Standard Chartered forecast happens. Standard Chartered has a massive acceleration in GDP growth for India, Indonesia, Turkey, Brazil, Egypt and Russia. GDP PPP 2030 Forecast In 2030, the world will have about 8.56 billion and Asia will have nearly 5 billion people. Asian countries are still maintaining GDP growth of 4-8% depending upon the country. This is 1 to 5% faster annual growth than the rest of the world. On a purchasing power parity (PPP) basis, Asia will have 42% of the world economy next year. Purchasing ...

The brisk decline in the price of the  “black gold”  has changed the course of oil exporting as well as oil importing economies. The reasons attributed to this decline are mainly based on increased competition amongst the producers, economic stagnation in Europe and Asia and geopolitics. This downfall in global oil prices is continuing because of a mismatch in demand and supply. The demand is low as major oil importing economies like Japan and China are facing slowdown. The supply on the other hand, is rising on account of the U.S. shale boom. The leading OPEC member Saudi Arabia, want to negate the increasing supply of shale oil by the USA and build a dominance in the Middle East region by increasing it supplies of oil and thus gain considerable increment in market share in the global oil market. But whatever be the reason of this drop, the Indian economy which is projected to grow at a faster rate in 2015, could not have asked for a better timing of the reduction in crude p...

We conclude the exact state of Indian economy on two parts, the first where Indian economy improving and later where the indicators are bad. Improvement in Indian Economy Post implementation of Demonetization (Nov. 2016) and Tax Reforms like GST (Jul. 2017), most economists had predicted a short term disruption and few quarters of muted growth, before long term benefits kick-in. We seem to be nearing the end of that period and starting the recovery to higher levels of GDP growth. Forecast by  “The Economist”  puts India back as world’s fastest growing major economy by 2018    Exports are consistently increasing - in 2017, exports grew by 12% YoY This is higher than China’s (8.5%) but lower than a few other emerging economies which clocked more than 15% (in absolute value, India’s exports are only about one-tenth of China’s) Exports are increasing at a higher pace than Imports Overall Trade deficit which was in a free fall from 2006 to 2012, has...

In India, growth slowed in recent quarters on account of disruptions from the currency exchange initiative (“demonetization”) in November 2016 and, more recently, the rollout of the goods and services tax, a landmark tax reform that is expected to unify the domestic market and encourage businesses to move from the informal to the formal sector. Inflation has been low compared with the mid-point target in recent months, driven by lower food prices, allowing the central bank to cut its policy rate in August. In India , growth was revised down to 6.7 percent in FY2017 and to 7.4 percent in FY2018, reflecting the recent slowdown in economic activity. Growth will be underpinned by private consumption, which has benefited from low food and energy prices, as well as civil service allowance increases. Headline inflation is projected to stay close to the midpoint of the target band (4 percent ±2 percent) in FY2017, while moving to the upper half of the target band in the medium term as fo...

The Union Cabinet recently approved gold monetization scheme and Sovereign Gold Bonds. The Main objective behind the launch of gold monetization scheme and Sovereign Gold Bonds is to reuse the household gold which lying in lockers & cupboards of Indian homes. and also reduce reliance on import of gold. This gold monetization scheme and Sovereign Gold Bonds scheme will help in reducing the demand for physical gold. As we know most of the demand for gold in country is met through imports, this scheme will help in maintaining India’s Current Account Deficit in limits. Let’s take a look at key features of Gold Monetization scheme and Sovereign Gold Bonds. Gold Monetization Scheme (GMS): 1    1.   Gold Monetization Scheme (GMS) allows jewelers and investors to deposit physical gold in banks. This scheme allows Rich Temples of India to deposit the gold in the bank. Eg. Padmanabhamswamy temple Kerala ,   Tirupati Balaji temple ,   Saibaba temple shirdi etc....