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Global recovery on: RBI report
The global slowdown that started in mid-2000 seems to have bottomed out and certain leading indicators of economic activity suggest the possibility of a recovery, led by the US, in mid-2002, a RBI report said in Mumbai.
The global slowdown that started in mid-2000 seems to have bottomed out and certain leading indicators of economic activity suggest the possibility of a recovery, led by the US, in mid-2002, a RBI report said in Mumbai.
The recovery in the global equity prices after the events of September 11 and the declines in risk aversions and spreads in both mature and emerging market economies indicate the market expectations of a faster recovery, RBI said in its "Macroeconomic and Monetary Developments in 2001-02" report issued here on Monday.
The real effects of September 11 incident also turned out to be moderate than what was anticipated, it said.
According to projections made by the International Monetary Fund (IMF) in April 2002, global growth may be modestly higher at about 2.8 per cent in 2002 with quarterly growth rising from 1.5 per cent in last quarter of 2001 to four per cent by end of 2002, it added.
On Indian front, it said the external sector exhibited strength during 2001-02, notwithstanding the sluggishness in exports and the foreign exchange reserves increased to the tune of $11.8 billion reflecting abiding investors confidence in the fundamentals of the economy.
The RBI said the foreign exchange reserves comprising foreign currency assets, gold and special drawing rights stood at $54.1 billion on March end 2002 with the import cover of reserves increasing from 8.6 months at March 2001 to around 11.5 months at March 2002.
The rise in foreign exchange reserves was almost entirely on account of foreign currency assets, which increased by $11.5 billion to $51 billion by end-March 2002.
By April 2002, the foreign exchange reserves crossed the $55 billion mark, it added.
The current account deficit continued to remain modest. The external debt data for end-September 2001 indicate considerable improvement in terms of liquidity and sustainability, it said.
The recovery in the global equity prices after the events of September 11 and the declines in risk aversions and spreads in both mature and emerging market economies indicate the market expectations of a faster recovery, RBI said in its "Macroeconomic and Monetary Developments in 2001-02" report issued here on Monday.
The real effects of September 11 incident also turned out to be moderate than what was anticipated, it said.
According to projections made by the International Monetary Fund (IMF) in April 2002, global growth may be modestly higher at about 2.8 per cent in 2002 with quarterly growth rising from 1.5 per cent in last quarter of 2001 to four per cent by end of 2002, it added.
On Indian front, it said the external sector exhibited strength during 2001-02, notwithstanding the sluggishness in exports and the foreign exchange reserves increased to the tune of $11.8 billion reflecting abiding investors confidence in the fundamentals of the economy.
The RBI said the foreign exchange reserves comprising foreign currency assets, gold and special drawing rights stood at $54.1 billion on March end 2002 with the import cover of reserves increasing from 8.6 months at March 2001 to around 11.5 months at March 2002.
The rise in foreign exchange reserves was almost entirely on account of foreign currency assets, which increased by $11.5 billion to $51 billion by end-March 2002.
By April 2002, the foreign exchange reserves crossed the $55 billion mark, it added.
The current account deficit continued to remain modest. The external debt data for end-September 2001 indicate considerable improvement in terms of liquidity and sustainability, it said.
The exchange rate remained broadly stable during the year except for some short period of uncertainity in the aftermath of September and December 2001 developments, it added.
Bureau Report