Business
Germany declared ‘sick man of Europe’ as US and Brexit Britain economies grow | Personal Finance | Finance

Economists are declaring Germany as the “sick man of Europe” due to its weakened post-pandemic economy, while the US and UK show signs of renewed gross domestic product (GDP) growth.
Last week, America’s GDP grew by 2.1 percent for the second quarter of the year, according to the Bureau of Economic Analysis.
While this came in below expectations, it far outpaces the GDP growth of other G7 economies, such as Germany.
The heart of the European Union (EU) posted zero growth for the second quarter of 2023 as the economy contracted by 0.2 percent year-on-year.
It is not just the US economy that is besting Germany’s economy as the UK’s Office for National Statistics (ONS) revised its initial forecasts to estimate that GDP was 0.6 percent higher than before the pandemic.
Originally, the ONS estimated that the UK’s economy was still 1.2 percent smaller than its pre-pandemic size in the last three months of 2021.
With this change, the UK is likely no longer the worst-performing economy in Europe since lockdown.
Earlier this year, the International Monetary Fund (IMF) forecast that Germany’s economy would shrink in 2023.
If this prediction were to take place, this would be the global power and the only G7 country to see its economy contract this year.
The nation fell into a technical recession in the first quarter of 2023 and experienced two consecutive quarters of negative GDP growth.
Thomas Pugh, an economist at RSM, broke down why Germany’s economy is likely being outplaced by other European nations.
He explained: “Turns out the UK isn’t such a laggard after all. Revisions to GDP growth in 2020 and 2021 mean that rather than being about 0.2 percent smaller than its pre-pandemic size, the UK economy may actually be about 1.5 percent bigger.
“Admittedly, this would still mean that the UK is still near the back of the G7 pack, but it would be ahead of Germany and the gap between the UK and the rest of the G7 looks significantly smaller.”
ING’s global head of Macro and chief economist Carsten Brzeski contextualised the US economy’s performance against its European counterparts.
Mr Brezenski added: “Sure, the US economy has been holding up better than we thought. And yes, the eurozone economy grew again in the second quarter.
“Gradually retreating headline inflation should at least lower the burden on disposable incomes.
“And let’s be thankful for the build-up of national gas reserves in Europe, which should allow us to avoid an energy supply crisis this winter unless things turn truly arctic.
“But that’s about as upbeat as I can get. We still predict very subdued growth to recessions in many economies for the second half of the year and the start of 2024.”
Business
Rs 52,600 Minimum Pay & Fitment Factor Of 3.8, Demands Railways Employees’ Association


Consultations for the 8th Central Pay Commission are underway. The Indian Railways Technical Supervisors’ Association (IRTSA) is among the groups asking for salary revisions from the central government.
In a memorandum submitted during an interaction with the 8th Pay Commission on May 19 in Hyderabad, IRTSA proposed a hike in minimum pay and higher fitment factors for technical workers.
IRTSA demanded that the minimum basic salary should be revised to Rs 52,600. It also asked for classifying the post of Senior Section Engineer under Group-B gazetted status. Further it also proposed separate fitment factors for different categories of workers.
The fitment factor is used to calculate the extent to which existing salaries can be revised.
IRTSA recommended that higher indexing of fitment factors should be followed for safety category posts. It advocated a fitment factor of 2.92 for level-1 posts. For posts in levels 6,7 and 8, the association said the fitment factor should be 3.5 and for levels 9 to 12, 3.8.
The association also put forward the demand for a structured five-grade promotional hierarchy for Junior Engineers (JEs), starting from Level-7.
It also called for the correction of pay anomalies that affect technical supervisors as well as better alignment of pay structures in departments for the equitable treatment of employees with comparable responsibilities.
Also Read: 8th Pay Commission: Big Pension Change Proposed For Senior Citizens; Check Age-Wise Benefits
According to IRTSA’s memorandum, many railway engineers handling critical technical and supervisory functions face prolonged stagnation.
It highlighted how promotion to Group-B suffered from bottlenecks like less number of posts and unjustified comparisons with technical supervisors. IRTSA also asked for the inclusion of a training period for the Modified Assured Career Progression Scheme (MACPS) and the implementation of said scheme and its related court judgements.
The association also discussed allowances for technical supervisors such as night duty, overtime and Production Control Organisation (PCO) allowance with the 8th Pay Commission staff. It opposed the withdrawal of the PCO allowance, claiming that it helps improve productivity.
IRTSA asked for the extension of accident-free service award, risk and hardship allowance to open line engineers as well as staff.
Also Read: 8th Pay Commission: This Employee Body Submits Plea For 3.05 As Fitment Factor; Explains Rationale
Over the past few months, several associations have put forward their demands before the 8th Central Pay Commission.
As of now, no decision has been taken on IRTSA’s demands. The commission will collect submissions from different stakeholders before presenting its recommendations to the Centre.
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Business
PM Modi Meets EAC Members, Discusses Measures To Boost Economic Growth Amid Global Turmoil


Prime Minister Narendra Modi on Saturday chaired a meeting with the members of the Economic Advisory Council (EAC) to the prime minister and discussed a plethora of ideas and measures to bolster India’s economic growth amid global turmoil.
The prime minister and the EAC-PM members discussed various ideas and measures to further boost India’s economic growth in times of global turmoil, they said.
The members also gave their assessment of the impact of the West Asia conflict on India and the world.
West Asia Conflict’s Potential Impact
Ever since the war in West Asia began, economies around the world have felt adverse impacts in various aspects; be it energy prices spiralling out of control, restriction to air spaces, or security threats.
Additionally, conflict and military escalation threatens to push 2.5 million people in India into poverty and the country is projected to experience some loss in its human development progress, according to estimates and projections by the United Nations.
ALSO READ: ‘Iran Situation Seems To Be Going Quite Well’: Trump Claims Amid Fresh Round Of Fire
The United Nations Development Programme, in a report titled ‘Military Escalation In The Middle East: Human Development Impacts Across Asia And The Pacific’ noted that the conflict is “widening human development pressures across Asia and the Pacific.
Through higher fuel, freight, and input costs, the shock is diminishing household purchasing power, raising food insecurity, straining public budgets, and weakening livelihoods.”
The preliminary assessment, issued Tuesday, estimates that globally 8.8 million people are at risk of falling into poverty and the West Asia military escalation could cost Asia-Pacific up to $299 billion.
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Chairman Outlines Growth Roadmap In First Letter To Shareholders


Fast moving consumer goods (FMCG) giant Nestle India believes that rural India remains one of the company’s “biggest growth opportunities” as it expands its reach beyond smaller towns into deeper markets amid evolving consumption patterns. In his first annual address to shareholders since taking the helm in August 2025, Nestlé India Chairman and Managing Director Manish Tiwary said “rural India is highly heterogeneous” because of diversity in taste, price points, formats and occasions.
Nestle reported robust financial performance amidst a complex macroeconomic environment. The FMCG major delivered double-digit, volume-led growth with strong market share gains, recording total sales of Rs 23,071.5 crore for the 2025-26 financial year. Operational flexibility is essential because demand can change from one side of the street to the other.
ALSO READ: Nestle Q4 Review: All Brokerages Hike Target Prices On Double-Digit Growth – Should You Buy?
Tiwary, who succeeded company veteran Suresh Narayanan, emphasized a disciplined approach to execution and a clear strategy anchored on consumer centricity, penetration-led volume growth, brand reinvestment, and tech-enabled operations. “Consumption patterns in rural Bihar can differ materially from those in rural Karnataka in tastes, price points, formats and occasions,” Tiwary said.
Tiwary said India’s consumption landscape in FY26 was marked by “improving macro stability and uneven household sentiment”, with food inflation continuing to influence everyday consumer choices. “Urban demand remained relatively resilient, while premium segments stayed comparatively stable. Rural recovery was shaped by monsoon outcomes, farm income and government support,” he said. Tiwary noted that geopolitical crisis globally impacted energy, freight and input costs during the year.
Nestle India highlighted key external factors that weighed on business:
Inflationary Pressures: Food inflation and affordability concerns consistently influenced everyday consumer choices.
Geopolitical Strain: Global geopolitical developments adversely impacted energy, freight, and key input costs.
Uneven Recovery: While urban demand stayed relatively resilient and premium segments remained stable, rural recovery heavily depended on variables like monsoon outcomes, farm income, and government support.
According to Chairman Mnaish Tiwary, the key drivers for near-term growth are to navigate these complexities and drive near-term growth, Nestlé India is placing major bets on distribution expansion, emerging categories, and digital adoption:
Rural Push and Tailored Portfolios: Noting that rural India remains one of their most significant growth opportunities, the company is utilizing operational flexibility to cater to highly heterogeneous regional demands. By calibrating pack-price architecture and assortments to specific local needs, Nestlé aims to accelerate penetration.
Emerging Growth Engines: While core legacy brands like MAGGI, KITKAT, and NESCAFÉ remain the primary focus, Nestlé is actively building newer engines such as its Pet Food division under Purina PetCare.
Out-of-Home Expansion: The company has scaled its Nestlé Professional out-of-home footprint, successfully operationalizing 1,000 ‘Retail ONE’ kiosks-including NESCAFÉ Corners and MAGGI Hotspots-across educational institutions and airports.
Tech-Enabled Operations: Nestlé is leveraging applications like ‘NesMitra’ to facilitate self-ordering for rural wholesale hubs and retailers, streamlining route-to-market and increasing accessibility in challenging terrains.
Highlighting changing consumer preferences, Tiwary said aspirations across India are rising and consumers are increasingly embracing a mix of traditional, local, fusion and international foods and flavours. “It is our ambition to serve that diversity with creativity, consistency and quality that is uncompromising,” he said.
ALSO READ: Nestlé India To Prioritise Volume-Led Growth; Pricing Re-Evaluation Seen As Last Resort
Note for Nestle shareholders
For investors, Tiwary highlighted a disciplined focus on profitability, cash generation, and prudent capacity expansion. On the operational front, Tiwary said Nestle delivered its highest-ever operational cost savings in FY26 as part of its structural programme, leveraging technology to reduce costs that did not add value for consumers and customers. These structural savings provided the headroom needed to increase advertising, digital spends, and brand investments.
Tiwary also underscored Nestlé India’s recent track record of enhancing shareholder value through key capital market actions, including its NSE listing in 2023, a 1:10 stock split in 2024, and a 1:1 bonus issue in 2025. Together, these moves have improved liquidity and widened affordability, reinforcing overall shareholder confidence, according to the FMCG major.
The savings were reinvested into brand-building initiatives, including higher advertising and digital spending, stronger consumer activation programmes and deeper market penetration efforts, he added. Tiwary said the company’s primary focus remains on its core brands. “We believe our existing portfolio offers immense depth and significant headroom for growth. We strengthened the innovation and renovation pipeline so that our brands stay contemporary, distinctive, trusted and relevant in consumers’ lives,” he said, adding, “We will do fewer things but do them bigger, bolder and better.”
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