Mumbai. The slowdown in economic activity in the country in the second quarter is now a thing of the past and the medium-term outlook remains strong. The Reserve Bank of India (RBI) has said this in its bulletin released on Wednesday. An article on ‘State of the Economy’ published in the November Bulletin also said that domestic financial markets are seeing improvement due to the continued strengthening of the US dollar. There is pressure on the stock market due to continuous capital withdrawal by foreign portfolio investors.
It said, “Whatever slowdown was seen in the country in the second quarter of 2024-25 has now been left behind. This is because private consumption is driving domestic demand and spending during festivals has boosted real activity in the third quarter. “The medium-term outlook remains bullish as the natural strength of macroeconomic fundamentals reasserts itself,” the article said. The article also said that global economic activity remained strong during the fourth quarter of 2024 amid challenges and increasing protectionism. This article has been written by the team led by RBI Deputy Governor Michael Debabrata Patra. However, RBI said that the views expressed in the article published in the bulletin are those of the authors and the central bank has nothing to do with it.