GDP Growth will Slash in December Quarter! Nomura Explained the Reason

According to Nomura, Japan's financial services provider company, GDP growth may decline in the December quarter this year as well. According to Nomura, India's economic growth rate i.e. GDP growth in the December quarter of this year can be 4.3 percent. However, Nomura believes that there will be a slight improvement in the GDP growth rate in the first quarter of 2020 and it may remain at 4.7 per cent.

According to the government figures, in the second quarter of the current financial year (2019-20), the GDP figure has reached 4.5 percent. This is the biggest decline in any one quarter in almost 6 years. Earlier, the country's GDP rate was at this level in the March 2013 quarter.

What reason did Nomura give?

Nomura chief economist (India and Asia) Sonal Verma said, "The situation of Non-banking financial companies (NBFCs) continues to be critical due to prolonged crisis of domestic credit availability." According to Sonal Verma, " According to the financial year, we expect GDP growth to be 4.7 percent in FY 2019-20 and 5.7 percent in FY 2020-21. This suggests that the improvement is delayed and its pace may be lower than expected by the end of 2020. "

6th Consecutive Quarterly Decline

Explain that the country's GDP has been falling for 6 consecutive quarters. In the first quarter of the last financial year 2019, the growth rate was at 8 percent, then in the second quarter it dropped to 7 percent. Speaking of the third quarter of the last financial year, the GDP growth rate was 6.6 percent and in the fourth quarter it was 5.8 percent. In addition, the GDP growth rate fell to 5 per cent in the first quarter of FY 2020. Whereas in the second quarter GDP figures have reached 4.5 percent.