New Delhi (CNN Business)India's economy has downshifted from warp speed. Gross domestic product expanded 7.1% in the quarter ended September, according to official data. That's a big step down from 8.2% growth in the previous quarter. The slowdown was sharper than analysts had expected. But the reduced rate still places India ahead of China — which grew at 6.5% over the same period — as the world's fastest-growing major economy. India's economic performance is being closely watched as next year's general election looms into view. Prime Minister Narendra Modi won office in 2014 after a campaign in which he promised to boost India's economy and create millions of jobs. China's economy is growing at its slowest pace since the financial crisis Shilan Shah, an economist at Capital Economics, cautioned that India's GDP statistics are not always the most reliable. But he said recent data on industrial production and vehicles sales also indicated weaker growth. Read … [Read more...] about India’s economy just suffered a sharp slowdown
Economy
What to expect from 2019’s ‘post-peak’ economy
Larry Hatheway is chief economist at GAM Investments. The opinions expressed in this commentary are his own. Twelve months ago, investors were giddy. Markets were buoyant, supported by synchronous global growth and market-friendly US policies, including freshly minted corporate tax cuts and deregulation. What a difference a year makes. As 2018 draws to a close, investors are unsettled, volatility is spiking and most portfolios are in the red. Large setbacks in global equity and emerging markets, coupled with lackluster performance from bonds, credit and most hedge funds, have left investors unhappy this holiday season. In 2019, the market environment is likely to remain challenging as growth slows and returns on capital struggle to meet still-lofty expectations. Households, on the other hand, may fare somewhat better, as their share of the pie grows, courtesy of moderate wage increases. But even so, those gains are likely to be incremental and gradual. Global economic fundamentals … [Read more...] about What to expect from 2019’s ‘post-peak’ economy
It’s a tough time for trade. But emerging economies are moving ahead
Jonathan Woetzel is the Shanghai-based director of the McKinsey Global Institute. Anu Madgavkar is a partner based in Mumbai. The opinions expressed in this commentary are their own. This is an uncertain moment for global trade. Longstanding agreements between the United States and its biggest trading partners have been called into question by President Donald Trump. The United Kingdom is working to disconnect itself from the European Union. Look more closely, however, and another, less-told story appears. Trade among emerging economies, with China often serving as the anchor, has been rising sharply. The world is not standing still. We estimate that goods trade between emerging economies, both with China and not, encompasses 20% of the value of all global trade, up from 8% in 1995. Trade between China and other emerging economies has risen 11-fold in that time, while trade among emerging economies not involving China has risen six-fold. China runs a big trade surplus of $170 … [Read more...] about It’s a tough time for trade. But emerging economies are moving ahead
Etsy CEO on 3 ways Congress can fix the gig economy
Josh Silverman is the CEO of Etsy. The opinions expressed in this commentary are his own. When Patricia Beet's employer filed for bankruptcy shortly after the 2008 financial crisis, her job was relocated from Chicago to Los Angeles. Separated by three time zones, Patricia and her husband, David, started cooking together virtually through Skype as a creative way to connect. Money was tight, so instead of buying presents, the couple began gifting their culinary creations, from infused sugars and salts to BBQ seasoning. Before long, they set up shop on Etsy. More than 24,000 sales later, their passion project has become a full-time income stream and allowed them to reunite in the Midwest. Patricia and David's story, while unique, is illustrative of the new opportunities within the gig economy that emerged in the United States in the 2000s and grew exponentially after the Great Recession. In May of 2017, 21.4 million people worked in "contingent" jobs or "alternative" jobs, according to … [Read more...] about Etsy CEO on 3 ways Congress can fix the gig economy
The UK government says its Brexit deal will hurt the economy
London (CNN Business)It's official: The British government's plan for leaving the European Union will be bad for the economy. The government published a report Wednesday that outlines the economic costs associated with a range of Brexit scenarios. The Bank of England followed later in the day with its own assessment. The United Kingdom would be worse off under all scenarios studied by the government. Officials did not estimate the precise impact of the deal Prime Minister Theresa May has negotiated with the European Union, but even in the best case it too will mean a weaker economy than remaining in the bloc. "It is true that the economy will be very slightly smaller, but if we do the deal in the way that the prime minister has set out and negotiated, that impact will be entirely manageable," UK Treasury chief Philip Hammond told the BBC. The official estimates underscore the harsh economic reality of Brexit: Under any scenario, leaving the European Union will make Britain poorer … [Read more...] about The UK government says its Brexit deal will hurt the economy