Business & Economy Current Affairs 2017

IMF lowers India’s growth forecast to 6.7 %

The International Monetary Fund (IMF) in its October World Economic Outlook (WEO) has lowered India’s economic growth forecast at 6.7% in 2017 and 7.4% in 2018.

It is slower than 0.5 and 0.3 percentage points projected earlier by IMF. In April 2017 forecast, IMF had revised upwards India’s growth performance for 2016 to 7.1% as opposed to 6.8%

Key facts

The report has cited impact of demonetisation and implementation of Goods and Services Tax (GST) for expected slowdown during the current and the next year. It also held that India’s slowdown is happening even as the world economy is picking up steam. But it expects revival of growth in future due to structural reform.

India will regain fastest growing major economy tag next year when it is forecast to grow 7.4%, slower than earlier estimate of 7.7% but higher than China’s 6.5%. It also expects that the Indian economy to grow 8% in the medium term on the back of reforms undertaken so far.

Comment

IMF forecast is latest in series of downgrades in India’s growth prospects unveiled by other multilateral agencies such as World Bank, Asian Development Bank (ADB) and OECD.  Earlier, RBI had lowered its growth forecast for 2017-18 to 6.7% from 7.3%.

World Economic Outlook (WEO)

The WEO is survey conducted and published by IMF. It is published biannually and partly updated two times a year. It portrays the world economy in the near and medium context, with growth projections for up to four years into the future. WEO forecasts include key macroeconomic indicators, such as GDP, inflation, fiscal balance and current account of more than 180 countries around the globe. It also deals with major economic policy issues.

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India ranks 8th in 2017 Valuable Nation Brand List

According to Brand Finance’s recently released Nation Brands 2017 report, India was ranked 8th out of 100 countries on a list of most valuable nation brands. This year India slipped by one spot compared to 7th rank in 2016 and ceded its previous spot to Canada.

Key Facts

Top 10 Valuable Nation brands are United States (1st), China (2nd), Germany (3rd), Japan (4th), United Kingdom  (5th), France  (6th), Canada (7th), India  (8th), Italy (9th) and South Korea (10th).

In terms of valuation, India’s National Brand Value in 2017 is $2.04 trillion, down by 1% from last year’s $2.06 trillion. However, India’s brand rating has improved from ‘AA-‘ to ‘AA’. Despite rating improvement, India has not feature in list of 10 best performing nation brands which is topped by Iceland topped.

Asian nation brands are seeing a boom as Western countries stagnate.  China is fastest growing nation brand and has seen a record rise of $3.1 trillion. However, China’s nation brand value is half of that of the United States.

Valuable Nation Brand List

World’s most valuable nation list released as part Nation Brands report by Brand Finance measures strength and value of nation brands of 100 leading countries. Its method is based on royalty relief mechanism employed to value the world’s largest companies. The valuation is based on 5 year forecasts of sales of all brands in each nation and follows a complex process in which Gross domestic product (GDP) is used as a proxy for total revenues.

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