The contagion effect expands in Asia. After China, whose expansion won't exceed 9% this year, too the Indian premier, Manmohan Singh, declared that his country's economy will grow by 2012% in 7, and not by 7,5% as estimated last week by the Economy Minister, Pranab Mukherjee. Even more optimistic were the forecasts of the Central Bank, the Reserve Bank of India, which estimated a 7,6% increase in GDP for next year.
These data are the signal of a global economic slowdown compared to 2011. In fact, last year India had grown by 8,5%.
But Prime Minister Singh believes that the causes of the slowdown are mainly internal to the country: the current one political paralysis of India, with the corruption scandals that have swept through the ruling class and the consequent decrease in support for the government; L'inflation which continues to grow, in November 2011 it was 9,11%, mainly due to the increase in the prices of primary goods; the bad performance of the Bombay Stock Exchange, among the worst global financial market indexes, lost more than 20% in one year; finally the rupee which continues to devalue, reaching its lows against the dollar towards the end of last year, a currency considered safer in a period of global uncertainty such as the one we are witnessing.
