GDP shows 0.4 percent growth in December quarter

The country’s GDP growth stood at 0.4 per cent in the third quarter (October-December) of the current financial year. Economic growth in the October – December quarter was in positive points after two consecutive quarterly contractions due to the coronavirus pandemic. According to the National Statistics Office (NSO) data, GDP growth in the third quarter of FY 2019-20 stood at 3.3 percent. The NSO, in its second advance estimate of National Accounts, has projected a contraction of 8 per cent in GDP growth rate in FY 2020-21. In January, the first advance estimate recorded an economic growth of 7.7 per cent in the current financial year.

The country’s GDP growth rate stood at -24.4 per cent, -7.3 per cent and 0.4 per cent respectively in the first, second and third quarters of the current financial year, according to data from the Ministry of Statistics and Program Implementation.

According to analysts, the rapid growth in the situation associated with CKovid-19 and increase in public expenditure has brought the GDP growth rate back to positive.

Siddharth Sanyal, chief economist and head (research), Bandhan Bank, said that the annual growth of 0.4 per cent in the third quarter of the current financial year is in line with analysts’ expectations. This figure is much better than the two quarters before that. He said that these figures have given rise to expectations of a narrowing of GDP growth rate to 7-8 per cent during FY 2020-21.