Despite sharp rise in unemployment, Kerala FM Isaac claims GDP saw record 7.2% growth

Kerala finance minister Thomas Isaac on Thursday claimed that despite National Gross Domestic Product (GDP) going down, his state has done significantly well in terms of development. FM Thomas Isaac also asserted that Kerala has recorded  7.2 percent of growth and is showing upward trends since 2011. However, the employment sector is not in good condition as the figures of the unemployed individuals in the state have risen in the year 2019. 

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"There has been an acceleration in growth, while national GDP growth average was 6.9 per cent between 2016-17 to 2018-19, Kerala's growth has been at 7.2 per cent. This is a significant upward movement from 4.9 per cent achieved during the 2011-2016 period."

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A rise in the number of unemployed

Even though there is a rise in Kerala's GDP rate there is also a rise in the number of jobless individuals in the state. The economic review has revealed that the unemployment rate in the state has increased for the corresponding period. The GDP review is optimistic about the general economy, however, the employment sector is in a bad shape. According to the review, the total number of job seekers has gone up from 35.61 lakh in 2018 to 37.46 lakh in 2019.

2019 difficult year for world economy

Notably, the year 2019 was a difficult year for the global economy with world output growth estimated to grow at its slowest pace of 2.9 percent since the global financial crisis of 2009, declining from a subdued 3.6 percent in 2018 and 3.8 percent in 2017.

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Uncertainties, although declining, are still elevated due to the protectionist tendencies of China and the United States besides and rising US-Iran geopolitical tensions. Amid a weak environment for global manufacturing, trade and demand, the Indian economy slowed down with GDP growth moderating to 4.8 percent in the first half of 2019-20, lower than 6.2 percent in the second half of 2018-19.

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(With inputs from ANI)