Interpreting Q1 2022-23 GDP Results
Introduction Recently, the Central Government released the GDP estimates for the quarter ended 30 June 2022 i.e., first quarter of financial year 2022-23 (Q1FY23). The GDP growth was in double digits (though below the expectations of experts). There were many who were quick to point out that compared to the pre-COVID quarter (Q1FY20), our Compound Annual Growth Rate (CAGR) has only been 1.3% (S1). This article will try and deep dive into the same and look at some of the strong and weak points of our economy. Comparison with Peer Economies As per an interview with KV Subramanian, Former CEA and IMF ED Elect, India has grown faster during the COVID period compared to the other large economies like USA, Canada, Italy, UK, France, Germany, Japan, Italy etc. (S2). On the other hand, we have grown slower than economies like Vietnam, China etc. This implies that while our growth rates have been low, it is not bad compared to our peer economies. Sectoral Analysis Our sectoral analys...