Contact Your Financial Adviser Money Making MC
16
February 2017
Trade
deficit in January stayed stable at USD10 billion,
the same as in the previous month, with oil
deficit deteriorating but non‐oil
balance improving. Barring engineering goods, which are showing good
traction, helped by a favourable base, several other categories, such as
leather goods, garments, gems and jewellery moderated during the month.
These
are the primary observations of a research note from Edelweiss. Meanwhile, non‐oil/non‐gold
imports maintained pace at 6% year-on-year. Going ahead, Edelweiss expects
trade balance to hover around current levels. Recovery in the global economy is
a boost to exports, but base effect is turning adverse. Thus, stable to modest
improvement is the most likely scenario for exports. The Total Investment & Insurance Solutions
A
similar trend was observed in imports. Overall, imports growth improved to 7%
in January 2017, compared to 6% in December 2016. Non‐oil
and non‐gold imports showed a similar pattern. Just as with
exports, base effect and rebound in global commodity prices seems to be at
play. Specifically in January, gold imports were flat at USD2 billion, while
crude oil imports jumped, reflecting rising prices. The Total Investment & Insurance Solutions
Edelweiss
observe that it is worth noting that while global industrial activity has
picked up, one is yet to see visible pick up in global trade volumes. If one
looks at global trade, it has recovered in nominal terms in the past 3‐4
months, but world trade volumes have barely improved. The Total Investment & Insurance Solutions
No comments:
Post a Comment