India: Economy expands at slowest pace since 2009
February 29, 2012
The economy continues to show signs of cooling, with GDP growth decelerating for a seventh consecutive quarter. In the October-December period ? the third quarter of the fiscal year 2011/12 ? GDP increased 6.1% over the same period the previous year, the slowest pace in nearly three years. The reading came in below both the 6.9% expansion observed in the previous quarter and market expectations of a 6.3% increase. The deceleration over the previous quarter was mainly due to slower growth in the manufacturing sector, which moderated to a paltry 0.4% increase (Q2 2011/12: +2.7% year-on-year). Although the finance, real estate and business services sector grew a strong 9.0%, this was still down from the 10.5% expansion recorded in the previous quarter, while the trade, hotels, transport and communication sectors ? which represent nearly a quarter of the overall economy ? slowed to a 9.2% expansion (Q2 2011/12: +9.8% yoy).