It warns that if low wages lead people to consume less, and investment remains subdued, growth rates will suffer.
And despite subdued growth rates compared to historical levels, Nigeria remains by far the largest market across different industries and one of the most resilient markets.
But for the time being inflation is subdued, interest rates falling, banks hungry for government debt, foreign-exchange reserves ballooning and external borrowings modest.So Mr Singh, who was presenting his first budget since becoming finance minister, faced no really compelling pressure for radical surgery.
The goal of HASP is threefold: 1) to stanch foreclosures by refinancing mortgages of 4 million to 5 million "responsible" homeowners; 2) to provide $75 billion worth of loan modifications to help 3 million to 4 million "at-risk" homeowners; and 3) to subdue mortgage rates by injecting even more capital into troubled Fannie Mae and Freddie Mac.
In the second half of this year, the economy is likely to expand at a rate of at least 3percentt, inflation remains subdued and interest rates are near record lows.
"Long-term interest rates should still stay at historically low levels, after rising slightly with monetary tightening, due to still low short-term interest rates, subdued inflationary pressures, elevated size of the Fed's balance sheet, continued strong demand for safe assets, low long-term interest rates in overseas advanced economies and quantitative easing in the eurozone and Japan".
Inflation in the world's biggest economies remains subdued, and interest rates are low the lowest for forty years in America, for example.
Bond prices tend to rise and yields tend to fall when investors expect subdued inflation, low rates and modest economic growth.
As he says: "It remains a difficult trading environment for a small bank dependent on retail funding, with a combination of low interest rates, subdued mortgage demand and high competition for retail savings".
"It remains a difficult trading environment for a small bank dependent on retail funding, with a combination of low interest rates, subdued mortgage market demand and high competition for retail savings," Sandler added.
