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India’s economy expanded by 4.1 percent in its most recent quarter, a figure that would have been higher if inflation had not been as strong, The Wall Street Journal reported.
Prices grew by 7.7 percent in April, the fourth consecutive month in which inflation’s rate surpassed the central bank’s target of 6 percent.
Food prices in India have soared since Russia’s invasion of Ukraine virtually ended wheat and corn exports from those countries.
The Indian government also reported its economy grew 8.7 percent in the recently completed fiscal year.
In April, the country’s central bank trimmed its 2022 growth prediction from 7.8 percent to 7.2 percent.
TREND FORECAST: Go back to 2019, before the COVID War began, economic growth in India had fallen by half that year, from 8.1 percent in the first quarter of the year to 4.5 percent in the third, as more borrowers and lenders default and the credit crisis deepens.
The nation’s 2019 GDP registered the slowest growth in five years.
The impact is hardest on poor families and small businesses, many of which never recovered from the government’s chaotic tax scheme and its 2016 decision to outlaw and replace many denominations of existing paper money.
It should also be noted that as India’s government took strong lockdown measures to save its people from the virus, according to a 2019 study by the Global Alliance on Health and Pollution (GAHP), about 2.3 million people died of air pollution-related deaths.
Yet, this does not make the news, only the COVID War did…
To recap what we have been forecasting, India’s economy has long been in decline. As we have reported in the Trends Journal, in 2019, auto sales plunged and over one million workers in the auto industry were laid off. And, again, prior to the COVID War, India’s GDP had declined for seven straight quarters.
According to the Centre for Monitoring Indian Economy, India’s unemployment skyrocketed to more than 25 percent due to the lockdown.
Considering the scale of India’s lockdowns and the slowly phased reopening of businesses with a vast array of restrictions, we had forecast India’s economy and its currency will continue to decline… and as the numbers show, its growth is well below target.
As a result, civil unrest, which had been tamped down with the lockdown, will again escalate.