Business Standard

Exports to take severe beating if recession hits US, Europe: Experts

Domestic demand may have to cushion the external impact

exports
Premium

The US economy declined for the second-straight quarter from April to June

Indivjal Dhasmana New Delhi
Fears of a recession in advanced countries, amplified by the two consecutive quarters of GDP decline in the US, would affect exports from India but domestic demand would help its economy withstand the pressure.

Former chief statistician Pronab Sen said: “If the developed world goes into a recession, it would certainly affect our expo­rts. So, that would apply downward pressure on our economy.”

Bank of Baroda Chief Economist Madan Sabnavis concurred, saying the recession particularly in US shall affect exports from India and put pressure on the trade deficit, and hence the current account deficit (CAD).  This is because the

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Jul 29 2022 | 7:02 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com