Significant economic fallout from COVID-19
Moody’s Investors Service has lowered India’s GDP growth forecast for 2020 calendar year to 5.3%, on coronavirus implications on the economy.
This is the second downgrade of Indian economy. The rating agency had projected a 5.4% growth for 2020 in February 2020, down from 6.6% forecast earlier.
Making the forecast on 17 Mar 2020, Moody’s pointed out the significant economic fallout from more rapid and wider spread of the coronavirus, or COVID-19.
Dampening of domestic consumption demand in affected countries exacerbates disruptions to supply chains and cross-border trade of goods and services.
“The longer the disruptions last, the greater the risk of global recession becomes,” said Moody’s, forecasting a 5.8% growth rate for India in 2021.
Though India benefits from lower crude oil prices on the international markets, the weak economic growth means lower energy demand from the country’s industrial sectors.
India imports 80% of its energy requirement in the form of crude oil, the highest import bill. fiinews.com
