New Delhi: Moody’s Investors Service lowered India’s GDP growth forecast for the current financial year (2020-2021) from 2.5 percent in March to 0.2 percent on Tuesday (April 28).
In its report entitled – Global Macro Outlook 2020-21 (updated April 2020), Moody’s reduced the G20 industrialized countries as a group by 5.8 percent in 2020.
The rating agency cut its global economic and oil forecasts again today, predicting that the G20’s major economies will shrink this year by 4% this year due to ongoing coronavirus locks, before rising 4.8% again in 2021 becomes.
Moody’s individual country forecasts included a -5.7% slump in the US, -6.5% in Japan and the euro area, and -7% and -8.2% in the UK and Italy. China is expected to grow by only 1%, although a strong recovery of 7.1% could come next year, according to a Reuters report.
According to Moody’s report, “if the pandemic is not contained and the closure needs to be restored, our forecasts are subject to significant downside risks.”
On Monday, India Ratings and Reserach revised their economic growth forecast for India’s current fiscal year to 1.9 percent, the lowest level in 29 years. If the blockage is extended beyond mid-May, the economy could decline.
In its March forecast, Moody’s revised the forecast from an earlier forecast from 5.3 percent to 2.5 percent, predicting that India is likely to experience a sharp drop in income.