WHAT THE SECOND QUARTER GDP ESTIMATES REVEAL
RECOVERY CLAIMED BY GOVT IS DUBIOUS AND FRAGILE
2020-12-04 09:58
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It is ironic that government spokespersons should exhibit so much euphoria over the second quarter (July-September) Gross Domestic Product estimate, which shows a drop “only” of 7.5 per cent compared to second quarter 2019-20. The expectation had been that the drop would be larger, about 8 to 9 per cent; and as the first quarter drop had been 23.9 per cent, the talk has been of a “stronger recovery” than anticipated. The irony however is that on closer look the recovery appears both dubious, as well as immiserizing and hence fragile.