Mixed growth signals

Mixed growth signals

News:

1. The fourth quarter of the financial year 2017-18 grew at 7.7%. It is the fastest and strongest growth in the entire FY 2017-18.

Important facts:

2. The growth in economy is driven by growth in capital formation, manufacturing and construction sector.
3. The manufacturing sector has contributed to approx 20% of quarterly GVA (gross value added) and the construction sector contributed to 8%.
4. The Manufacturing sector grew at 9.1% (4^th quarter) and 5.7% for the entire FY18 and the Construction sector grew at 11.5% (4^thquarter) and 5.7% for the entire FY18.
5. Two key group of services that contributed to 38% of fourth-quarter GVA are as follows:
   • First group: trade, hotels, transport, communication and broadcasting
   • Second group: financial, real estate and professional services
6. The growth in construction sector will create more direct and indirect jobs and will serve as multiplier of overall output.
7. Agriculture, forestry and fishing sector has maintained its growth over the four quarters of the FY.
8. Gross fixed capital contributed the most in percentage terms (32.2%).
9. However, the contribution of private final consumption expenditure and government spending is weak.
10. The economy may be further be affected by external risks such as rise in crude price and input costs. RBI may also raise interest rate.