New Delhi: Rating agency Moody’s Investors Service lowered India’s economic growth forecast for 2020 to 5.3 percent on Tuesday, given the impact of corona virus on the economy.
Moody’s had earlier said in February that India’s GDP could grow at a pace of 5.4 percent in 2020. However this was also slashed from the earlier estimate of 6.6 percent. The agency said on Tuesday that the rapid spread of corona virus infection would have substantial economic impact.
In affected countries, it is affecting domestic demand, disrupting the supply chain and decreasing trade from one country to another. “The longer these disruptions occur, the greater the risk of a global economic downturn,” Moody’s said.
The agency projected India’s economic growth rate to be 5.8 percent in 2021. He said, “Many governments and central banks have taken a number of relief measures including financial relief packages, policy rate cuts, regulatory waivers, though steps taken to prevent virus infection will reduce the impact of these measures. ”
