Categories: Business

DBS sees double digit contraction in economy in April June

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Covid 19 Impact on Indian economy

new Delhi. The country's economy is expected to decline by 10 percent or more in the April-June quarter. A report said that due to curb on economic activity due to the Kovid-19 pandemic, the economy is expected to decline significantly. The gross domestic product (GDP) growth was 3.1 percent in the January-March quarter. A report by Singapore's banking group DBS said, "Our internal GDP calculation model estimates the GDP figures for the current and future quarters on an immediate basis. This assessment confirms that GDP will fall by 10 percent or more in the second quarter of April ie April-June. After this, there will be a slight improvement in the economy in the third quarter July-September.

Radhika Rao, an economist at DBS Group Research, said the epidemic was the reason for such a sudden drop in the economy. The decline in production due to the epidemic is difficult to compensate during the rest of the year. The report said that uncertainty would remain in the second half of 2020 due to the economy opening up and the transition not being controlled. Rao said that assuming that infection cases will remain high in the third quarter of 2020, we estimate that the growth rate in 2020 will be negative. The growth rate will decline by 4.8 percent on an annual basis. He said that in the event of delay in control of the epidemic and the time it takes for the economy to fully open up, the economy will fall by 1 to 1.5 percent more than our estimate.

The report says that it will be a challenge for the authorities to strike a balance between recovery in the economy as well as conflict with the epidemic. The report says that during this time Unlock 2.0 is implemented in the country, which will start more activities. Domestic flights and trains will increase further. Religious sites, hotels and malls outside the control areas will open.

This post was published on July 8, 2020 4:52 am

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