HDFC Chairman Deepak Parekh on Thursday said after almost two years into the pandemic, there is now greater confidence of co-existing with the virus and the optimism of a return to near normalcy.
''After nearly 24 gruelling months of the pandemic, there is now greater confidence of co-existing with the virus and the optimism of a return to near normalcy. Let's hope it stays this way,'' he said while speaking at the CII Real Estate conference.
The pandemic has taught many invaluable lessons, including the importance of agility, resilience and prudence, he said.
Parekh further said even as the threat of the virus is receding, globally there have been some significant shifts in the overall macro-economic landscape.
In 2022, all global forecasts point towards a distinct slowdown in global growth. The lower forecasts are led by slowing of the world's two largest economies – US and China.
The GDP of advanced economies are projected to decline from 5 per cent in 2021 to 3.9 per cent in 2022. Also, emerging markets are projected to chart a downward trajectory of 6.5 per cent in 2021 to 4.8 per cent in 2022, he said.
''Fortunately, India continues to stand out as being amongst the fastest growing major economies. Yet, India is not decoupled from the events unfolding in the global environment,'' he said.
Major central banks have repeatedly articulated a gradual unwinding of their stimulus measures, he said.
There is a shift in the narrative that rising inflation is no longer transitory, but getting more entrenched.
Parekh said there are concerns on the future actions of the Fed, increases in interest rates and uncertainty of this impact on emerging markets.
As a result, equity markets across the globe have turned edgy and bond yields have moved up. This has been compounded by geo-political tensions as well, he added.
''One agrees there is a change in the tide, but haven't we all seen such market cycles before? I don't think there is reason for panic,'' Parekh said.
(With inputs from PTI)