Categories: Business

July core sector data: Corona hit on economy, core sector shrinks for the 5th consecutive month. July core sector shrinks 9.6% vs 12.9% contraction in June

Photo: FILE

Core sector

In the midst of the Corona crisis, a forecast of GDP figures to be presented on Monday has been presented by core sector data. The index of 8 industries in the core sector has declined for the 5th consecutive month. The July core sector has shrunk to 9.6% from 12.9% in June. This series of continuously decreasing demand and production has been going on for the last 5 months. Before that, the index of eight core industries had dropped 22% in May. At the same time, it fell by 37% in April.

Explain that the National Statistics Office will release the gross domestic product (GDP) estimates for the first quarter of the current fiscal on Monday. Market experts say the GDP is expected to decline by up to 25 percent in the June quarter due to the harsh lockdown caused by the corona virus. At the same time, the survey of Bloomberg is expected to fall by 19.2 percent. It is worth mentioning that on Thursday, Finance Minister Nirmala Sitharaman described Kovadi-19 as a divine event and said that its impact will be visible on the economy and there will be a big contraction in the current financial year.

The central government imposed a lockdown across the country on 25 March to keep Kovid-19 under control. This lockdown was then granted a partial exemption in May, which has since been removed at various consecutive stages. But the lockdown has been reimposed in some states due to increased prevalence of Kovid-19.

Rating agency Icra forecasts a 25 percent decline in GDP in the first quarter of the financial year 2010-21. Various rating agencies and global finance analyst companies have projected a contraction of more than five percent in the country's economy in 2020-21. According to a report by McKenzie Global, it needs to grow at an annual rate of eight to eight and a half percent in the next decade, so that opportunities can be created.

This post was published on August 31, 2020 3:21 pm

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