The conundrum of flattening or inverted yield curve and strong consumption demand may not have been as stark as it is today. As per the latest official GDP release, the average growth for FY23-FY24 has been upgraded significantly, and FY25 is expected to deliver 6.5%, resulting in a three-year average of 7.8%. This will be higher than the averages for 60-, 35-, and 26-years at 5.3%, 6.1%, and 6.4%, respectively.What's more, real private consumption, estimated to have grown at 6.8% in the first three quarters of FY25, is projected to leapfrog to 9.9% in the fourth quarter to make an average of 7.6%.
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