Global Consultancy, PwC, in its study, underscored that even as China witnessed economic slowdown, it expected India’s economic growth to shoot up to 7% in 2015. In its report, the consultancy pointed that with turnaround being at the corner, economy is likely to resume growing at more than ‘6%’ on the back of structural reforms.
The global consultancy, like most financial firms, highlighted that in the short term, low oil prices were likely to increase GDP growth, ease the pressures of India's high current account deficit and help bring down inflation. But, it pointed that ‘Budget 2015’, which could see India take a step towards implementing new structural reforms that will boost the economy, as a factor responsible for country’s medium term economic prospects.
For the rest of the globe, while PwC expects China to make the biggest contribution to global growth this year, even at the projected growth rate of 7.2%, which would be its slowest since 1990, it sees US to witness fastest growth in a decade. Separately, for euro, it anticipates quantitative easing programme, involving the purchase of government bonds.
PwC pointed that oil prices, hard landing in China and escalation of geopolitical risks were the three factors that business should look out for. It pegged oil prices to an average between $60-70 over the course of 2015 and conclude around $80 by the end of this fiscal.