Moody's slashes India growth forecast to 0.2 pc for 2020

Moody's slashes India growth forecast to 0.2 pc for 2020

Moody's Investors Service on Tuesday slashed India growth forecast for the civil year 2020 to 0.2 per cent, from 2.5 per cent projected in March.

For 2021, Moody's expects India's growth to rebound to six .2 per cent.

In its report titled - Global Macro Outlook 2020-21 (April 2020 update), Moody's has lowered G-20 advanced economies as a gaggle to contract by 5.8 per cent in 2020.

Moody's said the economic costs of coronavirus crisis amid the near shutdown of the worldwide economy are accumulating rapidly.

It expects G-20 advanced economies as a gaggle to contract by 5.8 per cent in 2020. Even with a gradual recovery, 2021 real GDP in most advanced economies is predicted to be below pre-coronavirus levels.

China's economy is forecast to grow by 1 per cent in 2020.

"India extended a nationwide lockdown to 40 days from 21 days, but relaxed restrictions in rural areas to facilitate agricultural harvesting within the last half of April. The country has determined that a lot of of those areas are freed from the virus. India also plans a phased opening of various regions while continuing to hold out identification and contract tracing," Moody's said.