The Indian economy is expected to witness cyclical growth recovery, with real GDP growth likely to accelerate from 6.4% this year to 7.5% in 2018 and further to 7.7% in 2019, says a report. According to global financial services major Morgan Stanley, corporate return expectations and balance sheet fundamentals are improving, and a strengthening financial system should be able to meet investment credit demand. “This sets the stage for a fully fledged recovery in 2018, and we expect real GDP growth to accelerate from 6.4% in 2017 to 7.5% in 2018 and further to 7.7% in 2019,” Morgan Stanley said in a research note. Besides, both consumption and exports are picking up and this in turn should lead to an improvement in corporate revenues. On prices, the report said the cyclical growth recovery and normalising food prices should drive a pick-up in headline inflation.

Source: Hindustan Times December 08, 2017 06:22 UTC