Arthanomics Vittarth

LATEST DATA RELEASE OF MACRO-ECONOMIC INDICATORS

#Arthanomics_68
On 31-August-2020, we had seen various data releases from the government on GDP, Fiscal Deficit, CPI-IW, and Core Industries Growth rates. It is no surprise that all the indicators were negative. But the GDP numbers particularly were more negative than expected. Q1FY21 recorded a 23.9 contraction in economic growth. The Consumption has fallen because of avoiding discretionary spending by the economic agents and we can see the government has been spending aggressively. The government breached annual fiscal deficit targets within 5 months of FY21 to boost the economy. We can see a flattening of V-Shape recovery in Core Industries growth and its a major concern as the flattening is seen in the negative territory. Finally, the CPI-IW has been rising because of excess liquidity in the markets. We believe this negative outlook has been one of the factors for the bearish Stock Markets yesterday. Let’s have an overview of what the data releases are saying in today’s Arthanomics Edition.

Credits: Iti Agrawal , Naman Adwani and Srijan Eppalapally

#Arthanomics#GDP#GDPQ1#CPI#Inflation#FiscalDeficit#Markets#Nifty#Sensex#Covid19#recovery#stockmarket#CoreIndustries

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