GDP GROWTH FALL LEAVES ROOM FOR POLICY EASING IN INDIA

NEW DELHI - India’s real GDP growth slowed sharply in 4Q12 to 4.5% y/y, down from 5.3% in Q3 and its lowest growth since March 2009, as decelerating services growth and weak agriculture offset a pickup in industrial activity. The Q4 outturn brings India’s full year GDP growth to a decade-low 5.2% y/y in 2012. BBVA researchers say that while sequential consumption and investment indicators suggest a gradual recovery, waning fiscal support and a high trade deficit present downside risks to its 2013 growth projection of 6.5% y/y.