India's GDP will plummet by 10.5% this fiscal year forecasts Fitch Ratings
Sep 8, 2020, 11:11 IST
New Delhi, Sep 8 () Fitch Ratings on Tuesday projected a massive 10.5 per cent contraction of India's economy in the current financial year. India recorded one of the sharpest gross domestic product (GDP) contractions in the world in April-June.
India's GDP shrank by a staggering 24 per cent year-on-year amid the imposition of one of the most stringent global nationwide lockdown.
"GDP should rebound strongly in 3Q20 (October-December) amid a re-opening of the economy, but there are signs that the recovery has been sluggish and uneven," Fitch said.
"We have slashed our GDP forecast for this fiscal year to (-) 10.5 per cent, a huge revision of (-) 5pp compared to the June Global Economic Outlook (GEO)," it said.
Fitch had earlier projected India's GDP to contract 5 per cent this fiscal.
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India's GDP shrank by a staggering 24 per cent year-on-year amid the imposition of one of the most stringent global nationwide lockdown.
"GDP should rebound strongly in 3Q20 (October-December) amid a re-opening of the economy, but there are signs that the recovery has been sluggish and uneven," Fitch said.
"We have slashed our GDP forecast for this fiscal year to (-) 10.5 per cent, a huge revision of (-) 5pp compared to the June Global Economic Outlook (GEO)," it said.
Fitch had earlier projected India's GDP to contract 5 per cent this fiscal.
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Five things that Raghuram Rajan believes can help India counter its recent dip in GDP
Explainer: Why GDP matters and how India uses two methods to calculate it