Everybody is talking about a declining Gross Domestic Product (GDP) and its impact on the economy. In simple words, GDP indicates the financial health of a country. So if a GDP is declining, it means the financial health of the economy is deteriorating.
GDP as a figure, encompasses agriculture, industrial output and services.
The recent RBI policy stated that India’s GDP growth in the third quarter of 2012-13 was 4.5%, which was the weakest in the last 15 quarters. Moreover, the overall growth, has also decelerated to its slowest pace in a decade.
How does it impact you?
GDP is a strong indicator of future jobs prospects and salary hikes. Whenever GDP increases, the per capita income of the individual rises. Higher the GDP, better are the job prospects and salary hikes.
For example, in 2005-09, for example, he per capita income rose by 32% to Rs 26,000 as GDP was hovering at 8-9%.
With the dipping of GDP figures, it is time to safeguard your jobs, save money, curtail expenses and build a contingency fund. Never know when any emergency comes knocking!
Better Safe than Worry.
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