Manufacturing growth is seen slowing to 2.0 per cent in 2019-20 from 6.9 per cent last year, while construction is expected to post a growth of 3.2 per cent in 2019-20 from 8.7 per cent last year.
WITH A sharp slowdown in manufacturing and construction, and the only major support coming from government expenditure, the Gross Domestic Product (GDP) growth rate is seen slumping to 5.0 per cent, the lowest since the 2008 economic crisis, according to data released by National Statistical Office (NSO).
With this, the GDP growth rate is expected to rise only marginally to 5.25 per cent during October-March, the second half of the financial year, from 4.75 per cent in the first half. A major area of concern for policymakers is that with the exception of government expenditure, all other demand drivers — private consumption, investment and exports — are flagging. Two major employment generators are also showing signs of a slump, with growth in manufacturing seen slowing to a 15-year low and construction to a six-year low.
Please click here to read more.