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Impact of Covid-19 on Economy


                   Impact of Covid-19 on Economy
                The nationwide stalled economic activity could end in a permanent loss of 4% of GDP ie Rs 9 lakh crore thanks to the spread of Covid-19 and a nationwide lockdown to stop it, rating agency Crisil said. DK Joshi, chief economist of this full service global ratings agency, said that this loss is merely possible by achieving 8.5% GDP growth per annum within the next three financial years.
  Impact of Covid-19 on Economy
Impact of Covid-19 on Economy
                  Roche said, "The recovery rate thanks to the low base may look very high because the economy is suffering badly." So we will expect a recovery, but the activity level are going to be below normal because the economy is suffering badly. Fitch estimates that its next quarter growth might be 1.4 percent. Fitch says that the most reason for the decline in rate of growth in FY 2021 are going to be the decrease in consumer spending, which can come down from 5.5 percent to 0.3 percent.
                 The rating agency has also made major cuts in global GDP forecasts. Fitch Ratings chief economist Brian Coulton said world GDP is projected to say no 3.9 percent in 2020, which can have double the impact of the 2009 recession.
 Consistent with the survey, the simplest performance of GDP within the current fiscal year may increase by up to 1.5 per cent and just in case of very poor situation, it can fall by 6.4 per cent. The service sector also features a maximum of 0.1 per cent during the present fiscal year . There could also be a rise and a 4.5 per cent decline are often seen on very poor performance. During this era , the industry sector may fall by a maximum of 14 per cent and if performance is sweet , this decline are often reduced to 2.3 per cent.

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