As per the Paris-based think-tank the Organisation for Economic Co-operation and Development (OECD), emerging economies like India, Brazil and Russia are expected to witness weak growth in coming future. The Composite Leading Indicators (CLIs), designed to anticipate turning points in economic activity, point to weakening growth in major emerging economies except China, where the CLI points to growth remaining around trend.
India’s CLI declined to 97.6 in February from 97.7 registered in January. CLI for India has been declining since November 2013 when it stood at 97.9. At present, Indian economy is struggling with a slowdown and its growth has slowed down to a decade low at 4.5 percent in FY13 and 4.6 percent during the first three quarters of FY14.
Referring to global front, OECD’s report noted that the growth prospect for most of the advanced countries has stabilized. CLIs for the 33-member grouping as well as the United States and Canada indicate growth remaining around trend. The indicator points to growth returning to trend in Japan and above trend in the United Kingdom. In the Euro Zone, CLIs continue to indicate a positive change in growth momentum. CLI points to stable growth momentum in France, while in Germany, growth is expected to be above trend.