 "Estimate of economic growth in Q4 reveals downside surprise")
The data on gross domestic product (GDP) and gross value added (GVA) for FY17 (financial year 2016-17) released by the Central Statistics Office has presented some surprises.
Contrary to our anticipation that the gradual remonetisation would result in a sequential uptick in growth in fourth quarter (Q4) of FY17, GVA growth has recorded a broad-based and considerable decline to 5.6 per cent in Q4FY17 from the revised 6.7 per cent in third quarter (Q3) of FY17. The only sub-sectors defying this trend are mining and quarrying, public administration, defence and other services, which are dominated by government spending.
The slowdown in GVA
