- The rating agency said that due to corona virus there is a risk of economic slowdown globally
Mar 18,2020 09:17:42 AM IST
new Delhi. Global rating agency Standard and Poor’s (S&P) has slashed India’s economic growth rate estimates in 2020. The agency has projected India’s economic growth to be 5.2 per cent in 2020. The agency has said that there is a risk of economic slowdown globally due to the corona virus. Due to this, economic growth is expected to be less this year. Earlier, the agency had projected India’s growth rate to be 5.7 in the calendar year 2020.
Asia Pacific’s growth rate to be less than 3 percent
In the report released on Wednesday by the rating agency, the economic growth in Asia Pacific region will be less than 3% due to the recession of the global economy. In an statement released by the agency, S&P Asia-Pacific Chief Economist Sean Ross said deep economic shocks in China in the first quarter of the current calendar year, shutdowns in the US and Europe, and the spread of the corona virus locally throughout Asia Pacific Economic growth will slow in the region. S&P said that China, India and Japan’s economic growth could decline to 2.9, 5.2 and -1.2 respectively in 2020. Earlier, the agency had predicted economic growth of these three countries to be 4.8, 5.7 and -0.4 respectively.
Moody’s also reduced India’s economic growth on Tuesday
Earlier Tuesday, Moody’s Investors Service had again lowered India’s GDP growth estimate. Moody’s had said that India’s growth rate could be 5.3 per cent in calendar year 2020 due to the impact of corona virus on the economy. Moody’s had predicted India’s real GDP growth rate to be 5.4 percent in 2020 in February last month. This was much lower than the earlier estimate of 6.6 per cent.
Corona virus may affect supply chain: Moody’s
The agency has said in its report that the spread of the corona virus will have a large impact on the economy. This will affect the supply chain of domestic demand and cross border business. The agency has said that the longer the corona virus remains in effect, the greater the possibility of a global recession. However, the agency expects India’s growth rate to be 5.8 per cent in 2021.
7965 people have died from Corona so far.
The impact of the corona virus has reached 165 countries so far. On Wednesday morning, the number of people infected with corona in the world increased to 1 lakh 98 thousand 241, while the death toll has reached 7 thousand 965. So far 3 people have died due to this virus in India while 145 cases have been reported.