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Moody’s cuts India GDP forecast
Why is it in the news?
- Moody’s has revised its growth forecasts for India downward to 5.4% for 2020 and 5.8% for 2021, from its previous projections of 6.6% and 6.7%, respectively.
More in the news
- About India:
(1) The economic recovery would likely be shallow.
(2) India’s economy has decelerated rapidly over the last two years.
(3) Improvements in the latest high frequency indicators such as PMI data suggest that the economy may have stabilised.
(4) A key to stronger economic momentum would be the revival of domestic demand, both rural and urban.
(5) But equally important is the resumption of credit growth in the economy
- G-20 Forecast:
(1) Moody's expect G-20 economies to collectively grow 2.4% in 2020, a softer rate than last year, followed by a pick-up to 2.8% in 2021.
- Coronavirus Threat:
(1) Moody's has revised its global GDP growth forecast down, given the adverse impact of the coronavirus on the world economy.
Source
The Hindu.