PwC economists reveal predictions for 2016

PwC economists reveal predictions for 2016

Question: According to PwC (PricewaterhouseCoopers) India’s growth rate in 2016 is estimated to be-

(a) 7.7%
(b) 8.0%
(c) 7.0%
(d) 7.3%

Ans (a)

Related facts:

  • According to a report by PricewaterhouseCoopers published on 7 January 2016, G7 (US, UK, Japan, Germany, France, Italy, Canada) countries will grow with more than 2% growth rate which is highest since 2010.
  • According to the report, India’s growth rate will be of 7.7 per cent in 2016 and inflation rate is estimated to be 5.2 per cent.
  • This is the second consecutive year; India has surpassed China’s economy.
  • According to the report the cut in the policy rate by the Central Bank of India from 8% to 6.75% last year will help to support consumption and investment growth this year .
  • It is estimated that the E7 (China, India, Brazil, Mexico, Russia, Indonesia and Turkey) emerging economies will grow slower than their trend rate (but still faster than the G7). Within the E7, the Brazilian and Russian economies will contract and China will slow, but India will be the star performer.
  • The report states that instead of economics, Geopolitics will be at the top of policymakers’ agendas: Three geopolitical issues will continue to dominate the news headlines. First, the migrant crisis in Europe, Second, the response of the international community to the crisis in the Middle East. Third, the referendum on the fate of the UK’s membership of the European Union.
  • Commodity prices will continue to decline.
  • US and UK interest rates to rise in 2016.
  • Report estimated that Eurozone GDP will expand by around 1.6% in 2016 – which is fastest growth rate since 2011.
  • Report states that the Chinese GDP growth will ease to 6.5%.
  • PricewaterhouseCoopers is a global professional services network. 157 countries are connected to the network. It is a reputed audit firm and was formed in 1998.

Reference:

http://press.pwc.com/News-releases/ALL/pwc-economists-reveal-predictions-for-2016/s/B2995C91-8091-45A7-92CD-ED2DFD8818AB

http://preview.thenewsmarket.com/Previews/PWC/DocumentAssets/416302.pdf