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VCSC Daily - Slow GDP growth send markets tumbling

Market Commentary

27 Mar 2012

GDP growth slows to 4% in 1Q 2012 - While this could be taken as a sign that the economy is slowing down, our forecast for the year (5.5%) remains unchanged. A slower GDP growth is not unexpected as 1Q is generally slower due to the holiday period. We note that the slower GDP growth probably has helped damper demand and explains partly why CPI for March came in at 0.16% m-o-m, bringing the y-o-y figure at 14.2%, a metric far more important for the stock market than GDP growth. Nevertheless, the

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