New Delhi, March 16
Chief Economic Adviser V Anantha Nageswaran on Thursday said the global uncertainty had been rising after the recent developments in the United States, and governments, businesses and individuals should keep “margins of safety” in fiscal, corporate and savings account planning.
He said the global growth estimates of the International Monetary Fund (IMF) given in January looked outdated and countries would have to watch what the developments in the US over the last week would do to confidence, bank lending growth and the subsequent chain effects.
Two banks in America have gone belly-up over the last week. Signature Bank, New York, which lent mostly to crypto industry, was shut down by the regulators on Sunday after there was a run on their deposits.
Besides, the failure of Silicon Valley Bank (SVB) last week left many start-ups, tech companies, entrepreneurs and VC funds nervous and jittery. SVB, the 16th largest bank in the United States, was closed on Friday last by the California Department of Financial Protection and Innovation, which later appointed the Federal Deposit Insurance Corporation (FDIC) as its receiver.
Speaking at a seminar, Nageswaran said uncertainty had been on the rising trend and had gone up a few notches in the last week and “this is something which countries need to live with, not only this year but for the next year and beyond”.
Most Read In 24 Hours
Don't MissView All
India shining on world stage, natural for anti-national forces to unite: PM Modi
Says unprecedented assault on corruption has angered those w...
Licences of 18 pharma firms cancelled for manufacturing spurious drugs, 26 issued show-cause notices
As part of the special drive, the regulators have identified...
Amritpal Singh seen without turban on Delhi street in fresh CCTV footage
Behind him, Papalpreet Singh, who is said to be his mentor, ...
Bhagwant Mann hits out at Akal Takht Jathedar for ‘provoking’ people through ultimatum to AAP govt
Punjab CM accuses Jathedar of favouring the Badals; Giani Ha...
Atiq Ahmad, 2 others get life sentence in Umesh Pal kidnapping case
7 others, including Ahmed's brother Khalid Azim alias Ashraf...