Covid-hit FY21: Demand shrinks all across, save food and household services

Biggest blow felt by restaurants and hotels, followed by clothing, footwear, transport and alcoholic beverages; surprisingly demand for health services also contracted

The first wave of Covid had a devastating impact on the economy, shaving off 7.3 per cent from the gross domestic product during 2020-21. Various segments of the economy were badly impacted that year.

When it comes to demand, practically every segment of the economy saw private final consumption expenditure (PFCE) declining during the year, barring food, non-alcoholic beverages and, to a lesser extent, house rent, water, electricity and gas. PFCE, which represents demand in the economy, rose 3.9 per cent during the year. This was a three-year low, showed official data on revised national accounts numbers.

The contraction impacted