Moody's cuts India growth forecast to 0.2% for 2020, from 2.5% projected in March

New Delhi: Moody’s Investors Service on Tuesday (April 28) cut India's GDP growth forecast for the current financial (2020-2021) to 0.2 per cent, from 2.5 per cent projected in March. 

In its report titled — Global Macro Outlook 2020-21 (April 2020 update), Moody’s has lowered G-20 advanced economies as a group to contract by 5.8 per cent in 2020. 

The credit rating agency slashed its global economic and oil forecasts again today, predicting ongoing coronavirus lockdowns would now see the G20 group of major economies contract 4% this year before bouncing back 4.8% in 2021. 

Moody`s individual country forecasts included a -5.7% slump in the United States, -6.5% plunges in both Japan and the euro zone and -7% and -8.2% ones in Britain and Italy. China is expected to manage just 1% growth though next year could see a strong 7.1% rebound, said a Reuters report.

According to Moody`s report, "There are significant downside risks to our forecasts in the event that the pandemic is not contained and lockdowns have to be reinstated." 

On Monday, India Ratings and Reserach had revised its economic growth forecast for India's current financial year to 1.9 per cent, the lowest in the last 29 years, adding that if the lockdown is extended beyond mid-May, the economy may witness a contraction.

In its March forecast, Moody's had revised the projection to 2.5 per cent from an earlier forecast of 5.3 per cent, predicting that India is likely to witness a sharp decline in incomes.