- Analytics
- News and Tools
- Market News
- India’s economy will likely contract this quarter as Covid cases soar - economists
India’s economy will likely contract this quarter as Covid cases soar - economists
CNBC reports that according to two economists, India’s economy may shrink in the current quarter as Covid-19 cases surge, but the country could recover in the next one.
On Tuesday, India reported another 323,144 cases, bringing the country’s cumulative infections to more than 17.6 million. That comes after the country reported five straight days of record new daily cases.
Sonal Varma, India chief economist at Nomura, said the country is “clearly going to see a sequential growth hit” in its first quarter. India’s fiscal year begins in April and ends in March the following year.
She predicts that gross domestic product will shrink around 1.5% in the current quarter, which ends in June. Varma added there is “downside risk” to this estimate.
Compared with the fiscal first quarter of 2020, however, the economy could grow more than 25%, she said. That’s because India’s GDP contracted nearly 24% in the same period last year.
Radhika Rao, an economist at DBS, similarly expects a contraction from last quarter, but “quite buoyant” numbers compared with last year.
She said there are “significant base effects,” and there will be a “natural bump up anywhere between 20% to 23%” in the quarter ending in June.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
