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At 4.2%, GDP Growth In 2019-20 Sinks To 11-Year Low: 10 Things To know

The GDP information mirrored partial impression of the COVID-19 lockdown on manufacturing and providers

Highlights

  • 2019-20 GDP development at 4.2%, worst tempo in 11 years
  • Manufacturing output shrinks 1.4% in March quarter
  • April-June determine to offer clearer image of COVID-19 impression: economists

India’s gross home product (GDP) grew 3.1 per cent in January-March, official information confirmed on Friday, reflecting the partial impression of the COVID-19 lockdown on the manufacturing and providers sectors. That was a lot better than economists’ estimates, however nonetheless decrease than 4.1 per cent within the earlier quarter. The annual enlargement within the GDP stood at 4.2 per cent in fiscal yr 2019-20 – the bottom tempo of development in 11 years, as towards a beforehand projected 5 per cent. The official charge of GDP enlargement comes days after the nation entered a 3rd month of lockdown with few exceptions to curb the unfold of the coronavirus pandemic, which has hampered an already-slowing economic system and compelled many companies to trim their operations resulting in hundreds of job losses.

Listed here are 10 issues to know in regards to the GDP information launched right now:

  1. The median forecast from a poll of economists by information company Reuters had pegged GDP development at 2.1 per cent within the remaining quarter of fiscal yr 2019-20, with forecasts ranging between +4.5 per cent and -1.5 per cent.

  2. With information for the most recent quarter, GDP development for the total monetary yr – which ended on March 31 – got here in at 4.2 per cent. In fiscal yr 2018-19, the nation’s GDP had expanded 6.1 per cent. (What Economists Say)

  3. The GDP development charges for the earlier quarters had been revised downwards. The GDP enlargement charge for the quarter ended December 31, 2019 was introduced all the way down to 4.1 per cent from 4.7 per cent. Equally, the expansion charges for the July-September and April-June quarters had been revised to 4.Four per cent (from 5.1 per cent) and 5.2 per cent (from 5.6 per cent) respectively.

  4. In an official launch, the Nationwide Statistical Workplace (NSO) stated the coronavirus-induced lockdown impacted the GDP information circulate from financial entities. “Some of these units are yet to resume operations and owing to the fact that the statutory time-lines for submitting the requisite financial returns have been extended by the government, these estimates are based on the available data,” the statistics workplace stated.

  5. Contraction in manufacturing sector output worsened to 1.Four per cent within the January-March interval, from 0.eight per cent within the earlier quarter. 

  6. Growth in agricultural manufacturing, nonetheless, improved to five.9 per cent in This fall, in comparison with 3.6 per cent within the October-December interval, the information confirmed.

  7. Earlier this month, Finance Minister Nirmala Sitharaman detailed financial and monetary stimulus value Rs 21 lakh crore to protect the nation from the financial fallout from the coronavirus outbreak. (Additionally Learn: Why Rs 21 Lakh Crore Package May Not Give Immediate Boost)

  8. Many economists have already lowered their projections for the present monetary yr, with some even warning about the opportunity of a recession because of the COVID-19 disease-induced lockdown. The federal government has maintained the lockdown ordered in late March although many restrictions had been eased for manufacturing, transport and different providers from Could 18.

  9. Some say the April-June numbers will give a clearer image of the injury attributable to the coronavirus to the economic system, as the lockdown’s full impression on manufacturing and providers will turn into extra obvious. 

  10. US-based Goldman Sachs Group sees India’s economic system shrinking by a document 45 per cent on an annualised foundation within the quarter to the tip of June, and by 5 per cent in fiscal yr 2020-21, displaying the economic system contracting way over beforehand anticipated.


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