India GDP Growth at 1-1/2-Year High of 7.9%
The Indian economy expanded 7.9 percent year-on-year in the first three months of 2016, higher than a downwardly revised 7.2 percent growth in the previous quarter and much better than market expectations of a 7.5 percent increase. It is the best performance in six quarters, boosted by private spending while investment and exports declined. Considering full 2015/2016 year (April to March), the GDP in India advanced 7.6 percent, higher than 7.2 percent in the previous year.
5/31/2016 2:48:50 PM
Private consumption growth accelerated to 8.3 percent from 8.2 percent in the previous quarter while government spending went up 2.9 percent, slowing slightly from a 3 percent growth in Q4 2015. Gross fixed capital formation shrank 1.9 percent, following a 1.2 percent growth in the previous period and stocks increased 5.6 percent, slowing from a 7.6 percent gain in Q4 2015. Exports declined 1.9 percent, following an 8.9 percent drop in the previous quarter and imports went down 1.6 percent after falling 6.4 percent.
On the production side, the gross value added for agriculture, forestry and fishery went up 2.3 percent, rebounding from a 1 percent drop in the previous period; gross value added accelerated for mining and quarrying (up 8.6 percent from 7.1 percent); utilities (up 9.3 percent from 5.6 percent) and trade, hotels, transport and communication (up 9.9 percent from 9.2 percent) but slowed for manufacturing (up 9.3 percent from 11.5 percent); construction (up 4.5 percent from 4.6 percent), financing, insurance and real estate (up 9.1 percent from 10.5 percent).