Despite some improvements in business activities, external demand remains subdued due to the specific challenges within individual countries, including issues in the property sector and the increasing public debt.
Although labour markets exhibit resilience, there are signs of easing, especially in wage growth, coupled with rising unemployment rates in certain emerging market economies.
Nonetheless, there is a positive trajectory in labour productivity and business formation, attributed to enhanced labour mobility and advancements in artificial intelligence and machine learning.
Despite central banks postponing expected rate cuts, government bond yields have risen from previous lows. However, bond prices still reflect a cautions stance compared to central bank evaluations, amidst concerns regarding potential volatility in bond markets compounded by escalating public debt levels.
Conversely, India has withnessed favorable economic growth, marked by a six-quarter high in real GDP expansion. The growth is propelled by buoyant demand conditions and increased investment, even though private consumption expenditure remains relatively subdued.
The manufacturing sector has been robust double-digit growth, while construction actively remains vigorous. Nevertheless, adverse weather conditions have led to a contraction in agricultural output.
India's financial markets are thriving, with stocks enjoying a bull market and the currency strengthening. Further more, the country has made significant strides in reducing extreme poverty.
What has led to the positive economic growth in India?
