MACRO ECONOMIC NEWS

Song, Smile, and A Saturday

Wishing A Serene Day Ahead 

 

Best Regards

Arbind

 

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Macro-Economic News 23 Jan 2021

 

India, within a week of the largest campaign, vaccinated more than a million of its citizen. It coincides with Indian Rabi planting hitting an all-time high at 675 lakh hectares.

 

The RBI has proposed tighter, bank-like regulation of the so-called shadow lending sector. It also signals its plans to drain some of the massive liquidity it has pumped into the banking system – a potential challenge for the government's borrowing program. The government is expected to bring significant changes to foreign investment rules for e-commerce, plugging its loopholes.

 

This budget (and the year) brings high expectations from all. Deloitte finds about 50% of industry respondents expecting a revival of their businesses. West Bengal seeks the Centre to allow States to borrow an additional 2 percent of Gross State Domestic Products (GSDP) - unconditionally. SBI research suggests increasing the investment limit of PPF and Senior Citizens Savings Scheme in Budget. The former CEA Arvind Virmani recommends prioritizing tax reforms.

 

The U.S. home construction, the highest since 2006 and general business activities – highest since 2007 as per IHS Markit - from manufacturers and service providers accelerated at the start of the new year, while capacity constraints generated more inflationary pressures remains firm in the U.S.  

 

The Swedish economy is set to contract on extended Swedish restrictions at the start of 2021 whereas exports from South Korea are picking up. U.K. household balance sheets seem healthier awaiting enough people to be vaccinated and restrictions to be lifted – for a quick economic rebound, although new-home sales in London are plummeting as lockdowns hurt demand and investors hold back from building apartments.

 

South Africa may revise its tax increase targets as its budget shortfall is set to breach wartime levels for a second consecutive year.

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