The current recession is more worrisome and longer than 2008: Goldman

(PTI) Mumbai, Ta: 18 October 2019, Friday

Depression in consumption has nothing to do with the NBFC crisis. The NBFC crisis has arisen since the IL&FS chapter. Brokerage firm Goldman Sachs has also lowered the country's economic growth rate by 5 percent. Many people are linking the current decline in consumption to the NBFC crisis. IL&FS went down in September, following which consumer financing has softened. According to one economist of this generation, consumption has been declining since January 1, which was before the IL&FS chapter.

The IL&FS chapter resulted in a liquidity crisis in the country. The global slowdown and the pull of funds are also witnessing a decline in economic growth.

There is a slowdown and growth figures have dropped by two percent, "said Prachi Mishra, chief economist at Goldman Sachs. However, he expected the growth rate to rise in the last six months of the year, given the recent decline in the repo rate by the Reserve Bank. Since February 1, the Reserve Bank has reduced the repo rate by 5 basis points to 8.5 percent.

In addition, the Government of India has taken steps to accelerate development by reducing corporate tax. Investment and exports have been declining for a long time, but a massive downturn in consumption is a new concern.

The current recession is long and has been going on for over twenty months, Mishra said, adding that it was different from the challenges of the notarial times and the financial crisis of the 3, which was temporary in the type of crisis.

The country's economic growth rate was at a five-year low of 5% in the June quarter. After falling below the June quarter growth rate, many analysts and international financial institutions have lowered the country's current economic growth projections for the current year. General Chat Chat Lounge