Jim Walker, Managing Director, Asianomics told that the outlook on global economy still remains uncertain and that the global economy is more problematic than thought of earlier. He added that there was a long way to go before seeing a V-shaped recovery. The stock market, Walker believes, doesn’t see global problems clearly.
With regard to India, Walker is of the view that investors must focus on returns instead of growth. India will be the biggest winner among Asian markets, he said. According to him, it will be very difficult to achieve 8% gross domestic product (GDP) growth in India and that one should be content with a 5–6% GDP growth. He feels at 6% GDP also India will still be a fast growing economy. However, he also added that India’s domestic-demand driven growth is positive.
India, he said, is growing two times as that of China in nominal terms. On the issue of liquidity, Walker said that central banks, globally, cannot keep injecting money. He does not expect the same degree of monetary loosening and added that asset prices would fall if liquidity flows were reduced.
S:MC
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