Risks to economy escalating in 2025, says SBICAPS
1 day, 16 hours ago

Risks to economy escalating in 2025, says SBICAPS

Live Mint  

New Delhi: The economic outlook for calendar year 2025 remains cautious, with many of the risks from the last year expected to escalate, leading to heightened uncertainty and volatility, according to SBICAPS. Fresh structural shifts, such as rising currency volatility and the diversification of global supply chains, are unfolding against a backdrop of ongoing trade wars, geopolitical upheavals, and political transitions, while emerging risks—rising household debt, fluctuating FII flows, and global financial tightening—threaten to amplify economic fragility, SBICAPS said in its monthly EcoCapsule Report for January released on Tuesday. Slipping GDP growth Real GDP growth slipped to 5.4% in the September quarter, the lowest in nearly two years, dragged down by a slowdown in manufacturing, urban consumption, and weak corporate earnings. The decline in inflation comes at a time when senior government functionaries including finance minister Nirmala Sitharaman and commerce minister Piyush Goyal have called for lower interest rates.

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