Passage 1
The bone of contention in the recent debate has been the drastic fall in household net financial savings to GDP ratio during 2022-23 on account of a higher borrowing to GDP ratio. In response to our previous article ‘On the Fall in Household Savings’ (The Hindu, April 21, 2024), the Chief Economic Advisor (CEA) to the Government of India has interpreted this trend as a mere shift in the composition of household savings, where households are argued to incur greater borrowing (or reduce net financial savings) solely to finance higher physical savings (investment). In this article, we argue that this interpretation is inconsistent with broad trends and highlight some signs of structural shifts in the Indian economy.
Source – https://www.thehindu.com/business/Economy/rising-d
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Passage 2
Violent street protests in Pakistan Occupied Kashmir (PoK) have left a police officer dead and more than 90 people injured since Friday (May 10), Pakistani media reported.
The violence erupted after about 70 members of the Joint Awami Action Committee, an organisation led by traders in the region, were arrested during a strike to protest the rising costs of food, fuel, and utilities. Pakistan’s economic crisis and high inflation have resulted in hardships for its people, and a section of traders have been additionally hit by the stopping of trade with India.
The traders took to the streets on Friday to protest against high electricity and food prices. There were similar protests against high electricity bills in August 2023 as well.
Source- https://indianexpress.com/article/explained/explained-g
