Private sector slowdown drags down growth

On Friday, the government released data estimating that the economy had grown by 4.4 per cent during the April-June quarter of 2013-14. This is the lowest quarterly rate since the fourth quarter of the crisis-hit year 2008-09. But that is where the similarity ends. Unlike in 2009, when governments and central banks around the world responded to the crisis with massive stimulus measures, the road ahead now presents just the opposite scenario. Events during the current quarter have been hugely impacted by the United States Federal Reserve Board's announcement that it will begin rolling back its liquidity stimulus.

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