Economy News
Demand recovery key to reviving growth

Economic activity has bounced back after the big slump during the lockdown, and green shoots of recovery in terms of improved macroeconomic numbers are somewhat visible. There is a growing consensus that GDP will return to expansion mode as early as Q4 of this fiscal and contraction in GDP growth for the full year will be only in single digits. However, the better-than-expected improvement was mainly through cost-cutting, which was also due to massive fall in wage bill, mainly at smaller firms, down by 22%, vis-à-vis staff costs remaining flat for larger firms. Meanwhile, sales volumes remain tepid. For listed non-financial firms, revenues were down 8% in Q2, while operating profits soared by nearly 50%.

News Source:- https://www.financialexpress.com/opinion/demand-recovery-key-to-reviving-growth/2169683/