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The central bank has “predicted” that the Gross Domestic Product (GDP) for the July-September quarter is set for a contraction of 8.6 percent.
- News18.com
- Last update: November 12, 2020 12:14 PM IST
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For the first time in history, India’s economy entered a “technical recession” in the first half of 2020-21, said a team of economists, including Michael Patra, deputy governor of the Reserve Bank of India in charge of policy. monetary.
According to economists, the economy contracted for the second consecutive quarter. In August, the government had reported a 23.9 percent contraction in its Gross Domestic Product (GDP) for the April-June quarter. The central bank has “predicted” that the Gross Domestic Product (GDP) for the July-September quarter is set for a contraction of 8.6 percent.
Nowcasting is the prediction of the present or very near future of the state of the economy.
“India entered a technical recession in the first half of 2020-21 for the first time in its history,” the economists wrote. The government is due to publish official statistics on November 27.
Moody’s also revised India’s GDP target for 2020. According to them, a decline of 8.9% is now expected from the previous forecast of 9.6%.
The median forecast in a Bloomberg survey of economists calls for a 10.4% contraction in the July-September quarter.
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