GDP Growth Rate Maybe 2.7 Percent In Q4

GDP growth rate may be 2.7 percent in Q4, expected to be 8.5 percent in FY22.

SBI economists have forecast GDP growth in Q4. Economists said that we are confident that the Gross Domestic Product (GDP) estimates for the fourth quarter of FY22 are surrounded by uncertainties.

For example, the 1 percent drop in the GDP estimates for Q1 FY22 from 20.3 percent all other things remain unchanged.

Economists said that the GDP growth rate in the fourth quarter is estimated to be up to 3.8 percent.

Official data on the economy is expected to be released on May 31.

The Central Statistics Office (CSO) had projected Q4 GDP at Rs 41.04 lakh crore and FY22 real GDP growth at Rs 147.7 lakh crore. However, it has improved by 1.7 percent.

He said with the quarterly numbers unchanged, Q4 GDP growth has been pegged at Rs 40 lakh crore, which is Rs 1 lakh crore lower than the initial estimates of the CSO.

“We believe that a downward adjustment in the Q1, Q2, and Q3 numbers could have a positive impact on Q4 GDP,” he said.

It said early trends for March quarter results of listed corporates showed better growth numbers in parameters along with a contraction in operating margins on account of higher input costs as compared to the year-ago period.

GDP growth rate may be 2.7 percent: Sectors such as steel, FMCG, chemicals, IT, and auto ancillary registered better growth.

While automobiles, cement, capital goods, and edible oil registered negative growth in profits, the topline registered growth.

Meanwhile, economists said oil prices are unlikely to remain high for a long time and added that they expect the Reserve Bank of India (RBI) to hike rates again in its June policy review.

Between RBI and the government close coordination was welcomed by economists as the best thing to emerge during the pandemic.