By Myn
GDP is among the top issues on Sentifi as many countries released their GDP quarter results. While India and Australia surprise the market with their estimate-beating results, Japan reports an increase in their growth rate as well. GDP screen on Sentifi brings different pieces of results from many countries together and forms a general view of what the economy looks like around the world.
With the gross domestic product growth rate of 7.6%, India has maintained the title of the world’s fastest-expanding major economy. India’s better-than-estimate results were a bright spot amid the world’s economic slowdown.
The strong growth rate also eases pressure on Raghuram Rajan, the governor of the Reserve Bank of India, to cut the interest rates when he reviews the policy next week. As Shailesh Kejariwal, an economist at B&K Securities India, said the market would not expect any cuts in the policy rate. India also looks to maintain the growth rate in the coming quarters.
India's GDP for quarter January-March stands at 7.9%, Marching towards fastest growing economy surpassing China pic.twitter.com/A5dbBdv2MQ
— M Venkaiah Naidu (@MVenkaiahNaidu) June 2, 2016
https://twitter.com/hostgatorwork/status/738256962899476480
Similar to India, Australia’s GDP is stronger than expected with an annual rate of 3.1%. The majority of economists expected the growth rate to be in range of 2.75% to 3%. This growth rate proved that the economy is growing at a necessary pace to stop the unemployment rate from rising higher.
However, economists’ concern lies within the dropping nominal income, which is another indicator for Australia’s national well-being. Chris Bowen, the shadow treasurer, said that the figures showed the most sustained decline in nominal income and living standards in history. The reasons is that Australia’s GDP was mainly driven by net exports. According to Chris Richardson, director of Deloitte Access Economics, the remarkable result is a strong evidence to show that Australia’s transition away from the mining investment-led growth is a step in the right direction.
The Japan Center for Economic Research said that Japan’s GDP grew 1% in April , which was the best increase in a long time for the country. Other figures included an increase in consumer spending (1.2%), decline in exports (1.6%) and imports (3.5%).
Recently, Japanese Prime Minister Shinzo Abe announced a delayed rise in sales tax and many more additional fiscal spending will be revealed later. Hiroaki Muto, chief economist at Tokai Tokyo Research Center, said that a better GDP reading is good for Japan. However, the country will have a weak recovery this year.
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