new Delhi. The S&P rating agency said on Friday that the Indian economy is in dire straits, and its growth rate could shrink to five percent in the current financial year.
S&P said in an update, “India’s economy is in a serious crisis. Difficulties in controlling the virus, weak policy response, and internal weakness, especially in the entire financial sector, give us a growth rate of five percent in the current fiscal year. Is heading towards a decline, while it will recover in 2021. ”
S&P in its report titled ‘Asia-Pacific Losses Near $ 3 Trillion Edge Balance Sheet Recession Looms (Asia-Pacific Losses Around $ 30 Trillion due to imminent Balance-Sheet Recession)’ Percent decline is projected, but in 2021 it may increase at the rate of 6.9 percent and there will be a loss of $ 30 trillion during these two years.
Shawn Roche Nekha, chief economist for Asia-Pacific at S&P, said “Asia-Pacific has had some success in controlling Kovid-19 and has responded through effective macroeconomic policies overall.”
“It can be a little helpful and provide a bridge for improvement. However, the recovery seems to be slow due to debt-ridden balance sheets,” he said.
Roche stated, “The decline due to the Kovid-19 did not begin as a balance-sheet slowdown, but may take the form of a balance-sheet recession. This means less investment, slower recovery, and an increase on the economy.” The permanent shock that will remain even after the vaccine is introduced. “
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