Coronavirus Pandemic and the Economic Outlook at Glance
India is also facing threats of community outbreaks in the coming days.
Due to the Coronavirus outbreak, global economies have been impacted very badly along with the world stock markets witnessing the record break lows in the past weeks. In January, BSE Sensex and Nifty 50 crossed their 42,000 and 12,400 marks respectively for the first time, and in just two months they are seeing their worst times since the global financial crisis of 2008.
It is not just the Indian market that is trembling, the situation is the same around the world. With the US taking over China in No. of Covid-19 infected patients, India is also facing threats of community outbreaks in the coming days.
Amidst these situations, the world's top rating agencies have issued economic forecasts for India and other Asia-Pacific regions.
S&P Global Ratings:
Reduced India’s growth forecast to 3.5% from 5.2% for the FY21
Reduced Asia-Pacific growth forecast to 2.2% from 2.7% for the year 2020
China’s growth forecast to be 2.9% for the year 2020
Japan’s growth forecast to be -1.2%
Though, along with cutting down in growth forecasts for FY21, S&P anticipates the growth outlook to be better in the Financial year 2022.
India’s GDP Forecast : 7.3%
China’s GDP Forecast : 8.4%
Asia-Pacific forecast : 6.1%
Before this, Moody’s Investors Service cut the Indian GDP forecast from 5.3% to 2.5% for the calendar year 2020.
IHS Markit has also forecasted the world real GDP to be 0.7% for 2020, and any rate below 2.0% is considered to be the period of recession. Thus, the coming months and any fortune in developing the cure of coronavirus is going to turn out very crucial for the world as lockdown impacts the demand & supply chain (i.e. oil demand and the slump in the oil prices,) which largely affects the economic outlook at large.
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