India: Economy to Shrink by 9.6 Percent Due to Lockdowns

SourceAl Bawaba
CountryMiddle east

India's GDP is forecast to plunge shaper than earlier estimated by 9.6 per cent in fiscal 2020-21consequent to the severe impact of the national lockdown and the income shock experienced by households and small urban service firms, the World Bank said in its latest assessment on Thursday. For the South Asia region, the Washington-based global lender predicted a sharper than expected economic slump across the region, with regional growth expected to contract by 7.7 per cent in 2020, after topping six per cent annually in the past five years.   The latest forecast is starker than the bank's June estimate of a contraction of 3.2 per cent for Asia's third-largest economic power, which had set an ambitious goal of becoming a $5 trillion economy by 2024-25 before the outbreak of Covid-19. Given the current more...