Real GDP growth at 4.8%, in line with expectations - Angel Broking

Real GDP growth for 4QFY2013 came in at 4.8%, in line with our as well as market expectations, as against 4.7% in the previous quarter and 5.1% in 4QFY2012.

Growth in the services sector has decelerated to 6.6% the lowest in about 4 years resulting in a sub-5% reading for GDP growth for the second consecutive quarter.

While 3QFY2013 GDP growth has been revised upwards to 4.7% from 4.5% estimated earlier, GDP growth in the three preceding quarters has been revised slightly downwards.

Overall for FY2013 as a whole, real GDP growth stands at a decadal-low of 5% as compared to 6.2% during FY2012.

On the demand-side, GDP at market prices has slumped to 3.2% as growth in consumption, investment as well as exports has more than halved as compared to FY2012.

We believe growth has bottomed out in 3QFY2013 and we expect a gradual pick up with recovery in consumption as well as investment to about 5.8% in FY2014.

Source : Equity Bulls

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