How To Survive A Slow Down

Financial pundits are predicting a gloomy time ahead for the global as well as indian economy. Nobody can argue numbers as growth figures continue plummeting with declining gdp figures, and inflation hits all-time high. Survival instincts should kick in now, as we propose you step up the game and take all measures to stay afloat in this period of uncertainty. Femina speaks to a few financial experts on how to secure your money during this economic slump

- Anindita Ghosh

India is facing its worst economic slump in decades. Many industrialists have been sounding the warning bells for a while now, and recent statistics haven’t been encouraging either. In the second quarter of 2019, the GDP growth rate fell to 4.5 per cent—the lowest in the last 26 quarters. While a lower GDP hits the poor harder, the per capita income reduces proportionately. Salaries are stagnant and employee benefits have been drying up; investment levels are lower as people do not have enough money to spare; interests on low-return deposits have dropped; bank loans are hard to come by; new jobs are few and far between since unemployment at 6.1 per cent (2017-18) is at a 45-year high.

“The core sector that comprises coal, crude oil, natural gas, cement, fertilizers, electricity, steel, and refinery products is the backbone of the nation. This sector registered a contraction of 5.8 per cent in October 2019, the second consecutive contraction after -5.1 per cent in September 2019. In sharp contrast, the core sector registered a 4.8 per cent growth in October last year. A disappointing core sector performance is a sign of a slowdown in the economy,” says CS Sudheer, founder and CEO, IndianMoney.com, a personal finance advisory portal.

Sudheer also explains that India is currently undergoing growth recession. “During the phase, growth is slow for a few quarters but not negative to be called a technical recession. Growth recession is common across several countries, and is characterised by job contraction. The economy expands, but at a slower rate,” adds Sudheer.