India GDP Growth Slows to 7.1% YoY in Q2

India's gross domestic product advanced 7.1 percent year-on-year in the second quarter of 2016, slowing from a 7.9 percent expansion in the previous period and missing market expectations of 7.6 percent growth. It was the lowest reading since the fourth quarter of 2014, as private consumption expanded at a slower pace while fixed investment dropped further.

Private consumption growth eased to 6.7 percent from 8.3 percent in the previous quarter while government spending jumped 18.8 percent, accelerating from a 2.9 percent growth in Q1. Gross fixed capital formation shrank at a faster 3.1 percent, following a 1.9 percent contraction in the previous period.

Exports increased 3.2 percent, following a 1.9 percent drop in the first quarter; while imports declined 5.8 percent after falling 1.6 percent in the precedent period.

On the production side, the gross value added for public administration, defence and other services expanded the most (+12.3 percent), followed by: financial, insurance, real estate and professional services (+9.4 percent); electricity, gas, water supply and other utility services (+9.4 percent); manufacturing (+9.1 percent); trade, hotel, transport, communication and services related to broadcasting (+8.1 percent); agriculture, forestry and fishery (+1.8 percent) and construction (+1.5 percent). By contrast, mining and quarrying contracted 0.4 percent.

India GDP Growth Slows to 7.1% YoY in Q2

Joana Ferreira |
8/31/2016 1:28:39 PM