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4 percent GDP decline forecast for India, ADB reveals grim outlook


18 June 2020 01:58

New Delhi: Asian Development Banks forecast for Indias GDP for the current fiscal is a negative 4 percent. In a supplement the agency observed Indias economy is forecast to contract by 4 per cent in fiscal year (FY) 2020, ending on 31 March 2021, before growing 5 per cent in FY2021 (to be ending March 2022),  In a previous publication dated April 3, ADB projected Indias economic growth rate to slip to 4 per cent on account of the global health emergency created by the COVID-19 pandemic.The agency highlighted a slump in major economies, a decline attributed to the devastating impact of coronavirus and restrictions.  Developing Asia will barely grow in 2020, as containment measures to address the coronavirus disease (COVID-19) pandemic is expected to hamper economic activity and weaken external demand, ADB said in a supplement to its Asian Development Outlook (ADO).Developing Asia refers to a group of over 40 countries that are members of the ADB. Excluding the newly industrialised economies of Hong Kong, China; the Republic of Korea; Singapore; and  Taipei, China, Developing Asia is forecast to grow 0.4 per cent this year and 6.6 per cent in 2021, it said.<b>Also Read:</b> <a href=https://www.sify.com/finance/impact/coronavirus/ target=_blank>In-depth statistics, insights and stories on Coronavirus</a>Economies in Asia and the Pacific will continue to feel the blow of the COVID-19 pandemic this year even as lockdowns are slowly eased and select economic activities restart in a new normal scenario, said ADB Chief Economist Yasuyuki Sawada.Hit hard by COVID-19, South Asia is forecast to contract by 3 per cent in 2020, compared to 4.1 per cent growth predicted in April. Growth prospects for 2021 are revised down to 4.9 per cent from 6 per cent, it said.  Sawada further said, while we see a higher growth outlook for the region in 2021, this is mainly due to weak numbers this year, and this will not be a V-shaped recovery. Governments should undertake policy measures to reduce the negative impact of COVID-19 and ensure that no further waves of outbreaks occur. As per ADB forecast, risks to the outlook remain on the downside.Among major non-Covid risks, agency highlighted the risk of renewed escalation in trade tensions between the United States and the Peoples Republic of China (PRC)..
4 percent GDP decline forecast for India, ADB reveals grim outlook. This article is published at 18 June 2020 01:58 from Sify Indian Business and Finance News, click on the read full article link below to see further details.


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