Focus: GS-III Indian Economy
Why in news?
Fitch Ratings projected global GDP to contract 4.4% in the current year, but revised upwards China’s growth estimate to 2.7% for 2020.
Fitch has slashed India’s growth projection to (-)10.5% from (-)5% estimated earlier after official data released last week showed the April-June 2020 quarter GDP contracted by 23.9%.
‘Limited fiscal support’
- The report said – India imposed one of the most stringent lockdowns worldwide in 2Q20 (April-June) and domestic demand fell massively. Limited fiscal support, fragilities in the financial system, and a continued rise in virus cases hamper a rapid normalisation in activity.
- It projected the U.S. GDP to contract 4.6% in 2020, less than the 5.6% decline it had forecast in June.
- Fitch revised China’s GDP growth forecast to 2.7%, from 1.2% in June, following the stronger-than-expected April-June outturn and continuing recoveries in investment, housing and exports.
-Source: The Hindu