TIL Desk/Business/New Delhi/ Moody’s Investors Service on Tuesday lowered India’s GDP growth forecast for the 2020 calendar year to 5.3 per cent, on coronavirus implications on the economy. Moody’s had in February projected a 5.4 per cent real GDP growth for India in 2020. This too was a downgrade from 6.6 per cent earlier forecast.
The 5.3 per cent real GDP growth forecast for 2020 compares to 5.3 per cent growth estimate for 2019 and 7.4 per cent achieved in 2018. Stating that there was significant economic fallout from more rapid and wider spread of the coronavirus, the rating agency on Tuesday said dampening of domestic consumption demand in affected countries exacerbates disruptions to supply chains and cross-border trade of goods and services.
“The longer the disruptions last, the greater the risk of global recession becomes,” it said.
