Economy

 

In 2016-17, the economy of the State of Kerala was adversely affected by a combination of natural and policy created factors. These varied factors form a medium-term deceleration in growth to a decline in primary commodity prices. Further, the departure from normal rainfall during the period from 1st June 2016 to 30 September 2016 (that is, coinciding with the period of the southwest monsoon) was 34 per cent, and the departure from normal rainfall during the period from 1st October 2016 to 27 December 2016 (northeast monsoon period) was 61 per cent. It is now clear that this cumulative shortfall in rain has caused drought conditions in Kerala that will continue at least till the next southwest monsoon.

 

On top of these came the ill-designed and unwarranted decision to cancel the legal-tender character of bank notes of Rs 500 and Rs 1000 denominations, which devastated the state's informal sectors and its cooperative credit infrastructure, with economy-wide consequences.

 
 
 

 

Read more @ www.spb.kerala.gov.in

Source : Economic Review 2016