Trinh D. Nguyen (Natixis) | India’s nominal GDP rose to $3.5 trillion by 2022, raising its global share by one percentage point to 3.5% and GDP per capita by 64% to 2,500 in the past decade. But diverging from its past, the current account deficit (CAD) narrowed from -3.5% of GDP to -1%, on average. The Indian economy grew more than expected, pushed by higher government infrastructure spending and household…

Alicia García Herrero (Natixis) | Will India’s gross domestic product ever surpass that of China? Ten years ago, no one would have given this question much thought. But times are changing. The Chinese economy may now be more than five times larger than India’s, but India is growing much faster than China, and no one expects that to change any time soon. Already, since 2010, India’s economy has overtaken those…

For India, the sharp fall of domestic demand led to a huge decline in imports that drove the current account into surplus, giving the country savings during times of crisis. The Philippines also had a balance of payment surplus as its imports collapsed, driven by the large drop in investment and contraction in consumption, which was unprecedented. But those factors, coupled with low rates domestically and externally, pave the way for not just a financial market rebound but also an economic recovery in 2021, as funding conditions are favourable and balance sheets trimmer.

Trinh D. Nguyen (Natixis) | In response to this, the government announced the first round of stimulus of 0.8% of on-budget cash-handouts to help vulnerable population cope. Additionally, monetary easing also helped through broad and targeted measures.