Moody’s lowers India’s GDP growth forecast to 5.3 pc in 2020
PTI, Mar 17, 2020, 12:05 PM IST
New Delhi: Moody’s Investors Service on Tuesday lowered India’s GDP growth forecast for the 2020 calendar year to 5.3 per cent, on coronavirus implications on the economy.
Moody’s had in February projected a 5.4 per cent real GDP growth for India in 2020. This too was a downgrade from 6.6 per cent earlier forecast.
The 5.3 per cent real GDP growth forecast for 2020 compares to 5.3 per cent growth estimate for 2019 and 7.4 per cent achieved in 2018.
Stating that there was significant economic fallout from a more rapid and wider spread of the coronavirus, the rating agency on Tuesday said 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,” it said.
Moody’s forecast a 5.8 per cent growth rate for India in 2021.
“A number of governments and central banks have announced countervailing measures, including fiscal stimulus packages, policy rate cuts and regulatory forbearance; however, the effectiveness of policy easing will be blunted by measures to contain the outbreak, and policy space is constrained for some sovereigns,” it said.
Also, tighter funding conditions and exchange rate depreciation could stress sovereigns with high foreign currency exposure, heavy reliance on external market funding or low foreign currency reserve coverage, it said.
Moody’s said oil price shock adds to the growth and fiscal pressures for exposed sovereigns. “A period of lower oil prices will further weigh on the economic and fiscal fundamentals of oil exporters while mitigating the trade shock for importers.
Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.
Top News
Related Articles More
Stock markets stage strong rebound after 4 days of slump, Sensex rallies 599 pts
PHF Leasing Limited raises $10 Mn through a mix of equity and debt
CCPA asks FSSAI to probe claim of Nestle adding sugar to baby products
Markets tank in early trade as Middle East tensions flare-up
Tesla shares tumble below $150 per share, giving up all gains made over the past year
MUST WATCH
Latest Additions
Injuries don’t define you: Mohammed Shami shares rehab update
Shivakumar desperately wants to become CM, says K’taka BJP chief Vijayendra
Scribe throws lapel microphone towards Sharad Pawar in Baramati; cops give clean chit
India delivers first batch of BrahMos missiles to Philippines
Air India cancels Dubai flights due to operational disruptions