India’s Gross Domestic Product (GDP) will shrink 4.5 per cent in 2020, as per the Dun & Bradstreet global report. Due to COVID-19 pandemic there will be a negative impact on India’s economic growth and GDP. In its report, India could face a negative growth of 4.5% in the fiscal year. The global outlook report shows economic growth and how various countries are dealing with the current situation. According to the report, none of the Asian countries including India, Japan, Singapore or China saw a growth upgrade.
As per the report, eleven countries including Albania, Bosnia & Herzegovina, Croatia, Cyprus, Czech Republic, Denmark, Hungary, Romania, Slovakia, Spain and Uruguay shows a rating upgrade globally. According to Dr Arun Singh, Global Chief Economist, Dun & Bradstreet, In India due to unanticipated lockdowns at the state level and in the containment zones will remain the demand depressed. This also a reason for creating uncertainty among manufacturers and suppliers who had planned to restart their operations as the government opened up the economy in three phases. The high unemployment rate, persistently high inflation and demand policy challenges for both RBI and Government.
Asian countries as a whole would take time for constant economic growth. Due to the despite the new cluster of outbreaks even in various countries with enviable disease control such as Vietnam and China, East and Southeast Asia are tentatively looking past about the effect of the pandemic to the consequences of so much monetary and fiscal loosening, the end of old-growth drivers such as tourism, and new ones in the form of advanced technologies.
In the report, China would grow at 2% in 2020 fiscal and 5.5% in 2021 fiscal. US GDP would diminish by 5.3% in 2020 fiscal as against 2.9% growth in 2021 fiscal. Japan’s growth rate too would decrease to negative 5.6% in 2020 as against 1.3% growth in the 2021 fiscal year.
The report pointed out that COVID-19 pandemic has lead to a sharp decline in imports, which has led to a positive impact on exports. The crude oil prices have been at a record –low in the global market. Based on the present scenario various social welfare schemes introduced by the government will help the economy. The projection is 6.4 per cent was lower than what the centre had predicted in April last year. The pandemic has affected especially with low-income households and will be a setback to the global efforts to reduce poverty.
