Fitch Solutions Monday slashed India's economic growth forecast for the financial year 2020-21 to 1.8 percent saying private consumption was likely to contract due to large-scale loss of income in the face of worsening domestic outbreak of COVID-19.
"Over the past week, we have continued to adjust down our country-specific real GDP growth forecasts on the back of persistent low oil prices and the widening spread of COVID-19. Our forecasts remain fluid and, even despite the recent downward revisions, we believe that the risks remain skewed to the downside," Fitch said.
For India, it said the real GDP growth rate for 2020-21 (April 2020 to March 2021) has been revised down to 1.8 percent from 4.6 percent, previously.
Currently, India is reeling under a lockdown in a bid to fight the COVID-19 pandemic. All the economic activities have been suspended in the wake of restrictions as part of lockdown. The lockdown was announced on March 25 and extended after three weeks until May 3.
India's federal health ministry Monday morning said the death toll due to COVID-19 in India rose to 543 and the total number of confirmed cases in the country reached 17,265.
Earlier this week, a report released by Centre for Monitoring Indian Economy (CMIE) said India's unemployment rate spiked to the highest level recorded in 43 months in March this year.
Source: Xinhua |
