Loan growth is likely to stay sluggish this yr due to weak demand & cautious approach on unsecured lending. Going forward, gap between credit growth & deposit growth is likely to shrink.
March has been a good month for equity & currency, backed by FPI inflows & weak dollar. Going forward, tariffs, Chinese markets, oil prices & corporate earnings may have a role to play.
While IMF welcomes India's shift towards debt-based fiscal anchor, it recommends improvements to the framework, besides endorsing exchange rate flexibility & other steps.
In fact, the latest reading of the Federal Reserve Bank of Atlanta’s nowcast of real GDP growth suggests a contraction of 2.4 percent in the first quarter of 2025.
The rebound in growth in December quarter was expected, owing to improvement in govt spending, festival-induced boost to consumption & a sharp increase in non-oil exports.
US is seeing a shift in govt’s approach to digital assets, while India’s draft Income Tax Bill introduces strict reporting requirements for crypto transactions, indicating a watchful outlook.
Use of tariffs stems from the urgency to curb rising US trade imbalance. US trade deficit in goods widened to $1.2 trillion in calendar year 2024 from $1.06 trillion in 2023.
Delhi has historically been in revenue surplus, but last 2 years have seen a deceleration. Subsidies & cash transfers may escalate the deficit, unless accompanied by a hike in revenues.
Govt has done well to stick to path of fiscal consolidation. It’s unclear if compression of revenue spends net of interest payments is the direction the govt would like to take in coming yrs.
Liquidity has been a concern as banks have been grappling for stable deposits for months. This is reflected in an increase in the credit-deposit ratio for individual banks.
The political trajectory is clear. Asim Munir is now prepared to convict and sentence Imran Khan for instigating a rebellion against the army chief, with no possibility of mercy.
RBI data shows 26 states and Union Territories couldn’t regain pre-pandemic foreign tourist footfalls in 2024, but domestic tourism surged 27 percent compared to 2019.
Of the total package, $649 million will be utilised for additional hardware, software, and support services, and the remaining for Major Defence Equipment (MDE).
None of Pakistan’s PMs has lasted 5 years. That the current PM has given Asim Munir 5 years shows that of all military dictatorships history has seen, Pakistan’s is most creative.
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