Posts Tagged ‘real economy’

Dubai Shakeout Leaves Thousand of Indian Families Worried

Dubai Debt Fallout Leaves Thousand of Indian Families Worried

The $59-billion debt woes of state-run Dubai World, one of the largest global conglomerates, has left thousands of Indian families worried, as the region accounts for half of the country’s $25-billion remittances.

.

Gulf countries employ five million Indians, out of the 25 million total strength of the Indian diaspora in 130 countries, and Dubai being a key driver of the region’s economy, a shakeout there is seen unsettling the job market — and the incomes of relatives.

.

Market experts have expressed that there will be at least 25-percent contraction in the job market and there may be a ripple effect on most Middle East countries because of Dubai World bust.

.

They also said that Middle East meltdown is not a last month generated phenomena  rather it has been there for the past one year.

Infact, people have been coming back to India for the past one year.

.

🙂

.

Market experts and policy makers have expressed concern over the prospect of Indians employed in the Gulf losing their jobs.

.

However they insist that much would depend on Dubai world Bust’s impact on the real economy there and employment.

.

Many relatives of Indian expatriates in the Gulf have expressed concern and worries over the prospect of the loss of jobs in Gulf  in the wake of Dubai World Fiasco !!

.

Many of families have taken huge amount of home loans to construct houses or to buy flats.

(With the dependence of paying it through the remittances they generally receive from their relatives working in Gulf).

.

Now, they have worries like if their close family member working in Gulf loses the job then it will get impossible to repay the loan amount in full.

😦

.

In Andhra Pradesh, which accounts for the largest share of remittances from the Gulf after Kerala, the realty industry feel there is an underlying worry that the Dubai World episode may just be the tip of the iceberg.

.

Experts over there feel that things might go from bad to worse when the Dubai companies announce their financial results in December and January and many more could lose jobs.

.

Analysts, nevertheless, maintained that while the future plans of Dubai World in India may be affected, the existing ones may not suffer much.

🙂

UNCTAD Projects 5% Growth for India :(

Indian economy

The UN body United Nations Conference on Trade and Development (UNCTAD) on Monday projected a lower growth of five per cent for India in 2009 as against Reserve Bank of India (RBI) and Government”s forecast of more than six per cent in the current financial year.

😦

Releasing its “Trade and Development Report 2009” in New Delhi, UNCTAD report said that it expected Indian economy to grow by five per cent in 2009.

The economy grew by 6.7 per cent in 2008-09 fiscal while in the first quarter of the 2009-10 financial year the Gross Domestic Product (GDP) expanded at 6.1 per cent.

🙂

However, the UNCTAD report listed India as the second fastest growing economy after China, in the backdrop of the global economy set to shrink by 2.7 per cent in 2009.

🙂

“The economic winter is far from over: tumbling profits in the real economy, previous over-investment in real estate and rising unemployment will continue to constrain private consumption and investment for the foreseeable future.

Even economies that will grow this year, such as those of China and India, are slowing significantly compared to previous years. The crisis is unprecedented in its depth and breadth leaving virtually no country unscathed,” it said.

😦

Further, the report said that improvement of certain financial indicators reached in the first quarter of 2009 as well as falling interest rate spreads on emerging-market debt and corporate bonds and the rebound in securities and commodity prices were seen as green shoots of economic recovery.

🙂

UNCTAD has said the growth rate of developed nations is expected to contract by 4.1 per cent in 2009, while it is likely to decelerate to 1.3 per cent in 2009 from 5.4 per cent in 2008 for developing countries.

😦

The UN body United Nations Conference on Trade and Development (UNCTAD) on Monday projected a lower growth of five per cent for India in 2009 as against Reserve Bank of India (RBI) and Government”s forecast of more than six per cent in the current financial year.

Releasing its “Trade and Development Report 2009” in New Delhi, UNCTAD report said that it expected Indian economy to grow by five per cent in 2009. The economy grew by 6.7 per cent in 2008-09 fiscal while in the first quarter of the 2009-10 financial year the Gross Domestic Product (GDP) expanded at 6.1 per cent. However, the UNCTAD report listed India as the second fastest growing economy after China, in the backdrop of the global economy set to shrink by 2.7 per cent in 2009.

“The economic winter is far from over: tumbling profits in the real economy, previous over-investment in real estate and rising unemployment will continue to constrain private consumption and investment for the foreseeable future. Even economies that will grow this year, such as those of China and India, are slowing significantly compared to previous years. The crisis is unprecedented in its depth and breadth leaving virtually no country unscathed,” it said.

Further, the report said that improvement of certain financial indicators reached in the first quarter of 2009 as well as falling interest rate spreads on emerging-market debt and corporate bonds and the rebound in securities and commodity prices were seen as green shoots of economic recovery.

UNCTAD has said the growth rate of developed nations is expected to contract by 4.1 per cent in 2009, while it is likely to decelerate to 1.3 per cent in 2009 from 5.4 per cent in 2008 for developing countries.