"Data released on Friday by the government is a brutal testimony on the state of the economy. GDP growth slid from 8 per cent a year ago to 5 per cent, the lowest in six years and lower than the most pessimistic forecast of economists. Clearly there is no room for denial.
There is a debate on whether the slowdown is cyclical or structural. When the economy does not respond to interest rate cuts and government spending, that which seems cyclical is structural. The slowdown is marked in labour-intensive segments. Manufacturing slid from 12.1 per cent to 0.6 per cent, agriculture from 5.1 per cent to 2.0 per cent, construction from 9.6 per cent to 5.7 per cent. Gross value addition, the go-to benchmark, slid from 7.7 per cent to 4.9 per cent..."
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