Global Ratings predict India’s At a time when the world is fighting the COVID-19 pandemic, India is facing a serious issue on the Economy front as the growth is likely to contract by 5 per cent this financial year. In its report, Global Ratings predict India’s highlighted India’s inefficiency in containing the Corona virus Pandemic, a weak policy response and underlying vulnerabilities, especially across the financial Sector.
The report also predicted the region & economy to shrink by 1.3 per cent in 2020, but grow by 6.9
Per cent in 2021.
If this turns out to be true, the Indian economy will face a loss of approximately USD 3 trillion over
These two years.
Shaun Roache, chief economist for Asia-Pacific at S&P Global Ratings, is also expecting balance-sheet
The downturn caused by COVID-19 did not start as a balance-sheet recession but may end up as
one, & Roache said. & quote; this means less investment, a slower recovery, and a permanent hit to the
Economy that will last even after a vaccine is found. & quote;
Because of the COVID-19 outbreak, the activities suddenly stopped. In order to prevent a collapse,
Policy makers, assisted by banks, have offered immense financial support to firms and households.
Banks may lend less than they normally would in a recovery to focus on the overhang from the
epidemic. While the demand is improving, private companies might prefer to stabilize debt rather
then ramp up spending on new investments.
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