The crisis in the international economic scene is bound
to have its repercussions in the State economy as well. The NRIs, the
export and import-based companies and the real estate sector may suffer
if the global economic meltdown continues. The NRIs will have to share
the burden of measures being implemented by their host countries to
ward off the crisis.
The result will be a slowdown in the remittances from abroad which
is likely to affect a spectrum of activities in the State. The boom
in the real estate sector was driven by the money supply in the market.
The soaring prices in the real estate and the rise in construction activity
had been supported by the steady arrival of foreign remittances. The
real estate sector grew to new heights as cities like Kochi started
implementing infrastructure projects like the Vallarpadom transhipment
terminal and LNG terminal. It was the NRI segment that sustained this
growth.
A meltdown in the real estate sector would mean that the sale of the
building materials would decline, resulting in a fall in the tax revenues
to the government. The large number of migrant labourers currently employed
by the construction sector would become redundant and they would be
forced to return to their native States, according to real estate managers.
The global crisis might affect the lives of Keralites too, said State
Planning Board Vice-Chairman Prabhat Patnaik at a recent meeting in
Kochi. The recession could affect the farmers of Wayanad if they do
not get remunerative prices. The slowdown in the U.S. economy had hit
several financial and IT companies with business links in the State.
