Fitch sees record contraction of Indian economy |
Fitch Ratings on 8th September slashed India`s FY21 growth projection to (-) 10.5 percent, from (-) 5 percent estimated earlier, saying the continued spread of the virus and imposition of sporadic shutdowns across the country has disrupted economic activity. In the first quarter of the current scale India`s GDP contracted by a massive 23.9 percent. Fitch said India recorded one of the sharpest GDP contractions in the world in the April-June quarter, but noted that growth should rebound strongly in the July-September period amid reopening of the economy. In its September update of Global Economic Outlook (GEO), Fitch said, the deepest recessions were in India, the UK, and Spain, countries that saw particularly large shocks in daily mobility data on visits to retail and recreation venues, and where lockdowns were stringent and long-lasting. It said multiple challenges are holding back growth recovery, both in the short and medium-term. Fitch had earlier projected India`s GDP to contract 5 percent. Fitch said that new cases of the coronavirus continue to increase, forcing some states and Union territories to re-tighten restrictions.
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