OECD (The Organisation for Economic Cooperation and Development)’s finding today reaffirmed the healthy picture for Indian economy.
The report is based on the assessment of Composite leading indicators (CLIs). Leading Indicators indicate about the direction an economy is changing to. OECD says CLIs provide ‘turning point in business cycles’ – calculating variations in output – its highs and its lows.
The report says the growth momentum is Japan, Germany and India is stable – or the indicators say so. Statistical indicators of the report may look confusing to a layman but the text is clear.
India has already become the world’s fastest growing economy. It is already the world’s third largest economy on ‘purchasing power party’ (PPP). On gross indicators, it is projected to become the world’s third largest economy by 2030. By then, it will have the largest middle class as a Harvard study finds. That means the biggest marketplace for global companies (including China’s).
The report says growth is ‘easing down’ in the US, the UK, Canada and China. That translates to slowdown in economies. So, the other major powerhouse, that has been the leading growth engine of the world economy for decades, China, is slowing down, as has been projected and is being analytically projected.
The OECD report also puts questions on economies of another two BRICS block countries, i.e., Russia and Brazil. While Russia’s positive growth is ‘driven by tentative signs’, Brazil has seen ‘loss in its growth momentum’. Though the dictator in Vladimir Putin will see it an overall positive sign for his presidency.
The report is also positive about economies in Japan, Germany and Euro area.
Japan, the world’s fourth largest economy, has seen a consistent rough patch and it coming back to the stable track is a good sign for the markers the world over. Germany is already the central point of Europe’s economy and the report see stable growth momentum here. And when it is seen in parallel with a ‘firming up’ growth in the Euro area (emphasizing on France and Italy), we find reasons to believe in the reports that Greece would remain in the Eurozone with a common currency.
OECD is a Paris based major global economic block of 34 countries, mainly European. The US, Canada, Japan, Australia, South Korea, Turkey and others joined it later on.
The report released on July 8 is based on data from 33 OECD member countries and six non-member countries.
©/IPR: Santosh Chaubey – https://santoshchaubey.wordpress.com/