Team Blitz India
NEW DELHI: The global economy is showing signs of slowing down in the final quarter of 2023 as manufacturing languishes even as the services sector activity appears to have reached the end of its post-pandemic expansion, the Reserve Bank of India (RBI) said in its November bulletin. Further, it said that going forward, tightening financial conditions is a significant risk to the global outlook.
“The global economy continues to face multiple macroeconomic and geopolitical shocks. The prediction of a global recession has not come true but there are indications that global growth is slowing down amid tightening financial conditions and still elevated inflation,” RBI Governor Shaktikanta Das said.
Das noted that while India’s growth remains ‘on track’, inflation moderating even though it is still above the median target of 4 per cent.
Meanwhile, in its State of the Economy article, the central bank said, “In India, the momentum of the change in GDP is sequentially expected to be higher in Q3:2023-24, with festival demand remaining ebullient,”.
