Q3 of GDP data shows positive growth of the economy: Banking Awareness Special Series

Team Adda247 and Bankers Adda have introduced a Special Banking Awareness series for SBI and IBPS Interviews 2021. In this series, we will be introducing the candidates with some banking awareness topics  On a daily basis that will improve their general awareness and will also ensure that the candidates do not lack in any banking term when it comes to the interview round. Today the topic of our Banking Awareness Series is Q3 of GDP data shows positive growth of the economy.

Q3 of GDP data shows positive growth of the economy

The Ministry of Statistics and Program Implementation has released GDP growth for the 3 rd
a quarter of the financial year 2020-21 grew by 0.4 percent, while the previous two consecutive quarters have seen contraction. The Finance Ministry said on this released data that, Real GDP growth of 0.4 percent in October- December i.e. 3 rd quarter of 2020-21 has returned the economy to the pre-pandemic period of positive growth rates. It reflects the strong recovery of the economy which was hurt by the pandemic situation. The V-shaped recovery which began in the second quarter of this financial year and reflects in the third-quarter shows us that the pre-pandemic economy activities are being started and it will continue. The sharp V-Shaped
recovery has been driven by rebounding in Private Final Consumption Expenditure and Gross Fixed Capital Formation (GFCF). This GFCF has improved from the contraction of 46.4 percent in quarter one to positive growth of 2.6 percent in this third quarter. Government Final Consumption Expenditure has played a critical role to support lives and livelihoods which provided the initial and very important stimulus to the economy. GDP contracted by 23.9 percent in the first-quarter i.e. April-June quarter and 7.3 percent in the second-quarter i.e. July-September quarter. The sharpest contraction of 23.9 percent in the first quarter is the worst in Indian economic history which was happened due to a strict nationwide lockdown.

The Ministry hopes that it will continue declining of the pandemic curve and step-up in
vaccination drive and even announcements will support the further revival of contract-based services.