India’s GDP to grow

NEW DELHI: India’s economy will grow by seven per cent during the current fiscal, despite poor agricultural output fuelling inflation, said chief economic advisor Arvind Virmani. During the release of his book, ‘The Sudoku of India’s Growth’ on Tuesday here, he said the impact of an inadequate monsoon on agricultural production would be known only by December. However, he expressed concern over inflation which is likely to be at six per cent by March-end. The WPI grew by 0.37 per cent in the second week of September while the CPI is in double digits. — Agencies

Oil prices rise

LONDON: Oil prices rebounded slightly after recent heavy falls triggered by fresh concerns about the pace of economic recovery in the United States, the world’s largest energy-consuming nation. New York’s main contract, light sweet crude for November delivery, rose to $66.39 a barrel. Brent North Sea crude for November delivery climbed to $65.40 in London trade. Prices closed down more than three dollars as mixed US economic data and signs of sluggish US energy demand highlighted fears about a tepid recovery from the global recession. — AFP

China FDI drops

SHANGHAI: China’s foreign direct investment fell in April for a seventh month as companies cut back amid the global financial crisis, the Commerce Ministry said. The ministry reported that foreign direct investment in China totaled $5.89 billion in April, down 22.5 per cent from a year earlier. That compared with a 9.5 per cent decline in March. Actual direct foreign investment in January-April fell 21 per cent to $287.7 billion as companies cancelled or postponed spending on factories and other assets due to weakening trade and financial conditions. — AP

Euro-zone sentiment

LONDON: The European Union on Tuesday said its economic sentiment indicator for the 16-nation euro zone rose to a one-year high of 82.8, up from 80.8 in August and exceeded forecasts for a rise to 82.2. The industry sentiment index rose one point to -24 while the services index rose to -9 from -11. Consumer sentiment index rose to -19 from -22 while the retail trade index rose a point to -15. The construction index rose to -31 from -32 in August. — Agencies

Joblessness rate falls

BERLIN: German unemployment declined in September, but the fall was due to a seasonal upturn and statistical effects rather than any fundamental economic improvement, official figures showed on Wednesday. The unadjusted jobless rate in Europe’s biggest economy was 8 per cent, down from 8.3 per cent in August, the Federal Labour Agency said. A total of 3.346 million people were registered as unemployed — 125,000 fewer than the previous month but 266,000 more than in September 2008. — AP

G20 powers

PITTSBURGH: Leaders have agreed to restructure the world economy by reducing imbalances between countries running massive deficits and those with surpluses, according to a draft of the G20 summit communique. Ahead of the summit of the leaders of the world’s biggest economies, big exporters like Germany and China had disagreed with major debtors like the United States on the need for measures to address these imbalances. But the draft final summit communique suggested that the members were ready to endorse a plan that would see China encouraging its own people to spend more at home and the United States to cut its yawning deficit. — AFP