How strong is the economic recovery? Economists go the extra mile to find out:
To measure the strength of the post-pandemic recovery, economists are analysing proxy economic indicators such as footwear sales, city billboard usage, product and service commercials, travel-related searches, fish, meat, and poultry purchases, and smartphone demand.
The economy has picked up speed, according to a slew of high-frequency alternative indicators and government-issued data sets like GST collection, foreign trade, e-way bills, and the Purchasing Managers' Index (PMI). However, given the distortion induced by the strong base effect of Covid-hit FY21, determining the exact amount of recovery is becoming challenging.
"An increase in consumer trust and morale has resulted from a reduction in Covid cases and widespread immunisation coverage," stated Gunjan Shah, CEO of Bata India. "People are progressively returning to normalcy as a result, footfall at all of our locations has grown."