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    5-6% GDP growth is not terrible: JP Morgan chairman Jamie Dimon

    Story outline

    • JP Morgan chairman and CEO Jamie Dimon said GDP growth numbers in China and India were “not terrible”
    • He said trade tensions had impacted businesses and sentiments, taking a toll on global growth
    • Amid a slowdown, governments – from the US to India – have called for deep interest rate reduction, causing friction with central banks
    JP Morgan chairman Jamie Dimon
    (This story originally appeared in on Oct 22, 2019)
    NEW DELHI: JP Morgan chairman and CEO Jamie Dimon, one of the most powerful American corporate leaders, on Monday said GDP growth numbers in China and India were “not terrible”, suggesting the slowdown should not cause excessive pessimism.

    “China is growing at 5.5%, you guys (India) 5-6%. Those are not terrible numbers. They are lower than what you could be doing, but it is 5% — the US is 2%, Europe is 1%, the globe is 2.7-2.8%,” Dimon, head of America’s largest bank, told TOI in an interview.

    Jamie quote

    He said trade tensions had impacted businesses and sentiments, taking a toll on global growth. Suggesting that policymakers needed to introspect over policy responses, he called for coordinated action between governments and central banks across the world.

    Amid a slowdown, governments – from the US to India – have called for deep interest rate reduction, causing friction with central banks.

    Dimon, however, said that this was not new. “I don’t believe there has ever been a president or prime minister who has wanted higher rates. That conflict has always been there. Central banks need to remain independent. If they are not it’s hard to protect your currency because political forces tend to do things they should not be doing.”

    Dimon suggested that JP Morgan, which has $12 billion country exposure in India, may “buy a bank one day” in the country. He backed the government’s recent initiatives on corporation tax reduction and bank consolidation but cautioned that checks were needed on state-run bank lending to ensure that capital was not wasted.
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    4 Comments on this Story

    Diepak Paul397 days ago
    What these percentages translate to numbers, and how it is distributed is also important
    Prof Manohar Lal399 days ago
    5-6% GDP growth based on history and hard resets made in recent past will not be seen bad in conjunction with 3-4% of inflation. But this is no good if India wants to kick itself off the poor per capita bracket to atleast a low-average income country. Such barely passable rates were seen even in chaotic economic & political environments in past, and happen with no strong reform push even
    Santimay Basu399 days ago
    But our Indian economists Pappu and Mrs Vadra, who graduated from their own dunasty, has an opposite view.
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