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GDP slump will hit $5 trillion target
Why is it in the news?
- The road to a $5 trillion economy by 2025 is beset with many speed-breakers, the NITI Aayog has warned the government.
More in the news
- From NITI Aayog:
(1) Nominal GDP growth, a measure of growth without accounting for inflation has to be at least 12.4% on average if that target has to be reached.
(2) The current rate was a mere 8% in the first quarter of the current financial year.
(3) Experts estimate that growth of second quarter will dip in Q2 compared to Q1 in both real and nominal terms.
(4) Domestic investment and consumption are the only dependable drivers for sustainable re-acceleration (of the economy).
(5) However, a deceleration in investment is visible, primarily in the household sector, due almost entirely to real estate.
Source
The Hindu.