Global financial services major Morgan Stanley foresees a cyclical growth recovery for the Indian economy, with real gross domestic product (GDP) growth expected to grow from 6.4 per cent this year to 7.5 per cent in 2018 and to 7.7 per cent in 2019. This sets the stage for a fully fledged recovery in 2018, the company said in a research note.
As demand conditions are improving after demonetisation and goods and services tax (GST) implementation, the company is confident of a recovery in private capital spending.Global financial services major Morgan Stanley foresees a cyclical growth recovery for the Indian economy, with real gross domestic product (GDP) growth expected to grow from 6.4 per cent this year to 7.5 per cent in 2018 and to 7.7 per cent in 2019. This sets the stage for a fully fledged recovery in 2018, the company said in a research note.#
The note expects the improving corporate return expectations and balance sheet fundamentals and a strengthening financial system to meet investment credit demand, according to a news agency report.
Rising consumption and exports should also lead to an improvement in corporate revenues and the cyclical growth recovery and normalising food prices should drive a pick-up in headline inflation, the note said.
Recapitalising the state-owned banks would remove the potential tail risk of the banking system posing a drag on growth, improve the headroom for growth and boost investors' and domestic corporate sentiment, the research note added. (DS)
Fibre2Fashion News Desk – India