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Fitch forecasts 5% contraction of Indian economy over slump, lockdown

Fitch said it has made further cuts to world GDP forecasts in its latest Global Economic Outlook (GEO) for May, but the slump in global economic activity is close to reaching its trough

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"India has had a very stringent lockdown policy that has lasted a lot longer than initially expected and incoming economic activity data have been spectacularly weak," Fitch said

Press Trust of India New Delhi

2 min read Last Updated : May 26 2020 | 10:52 PM IST

Fitch Ratings on Tuesday forecast a 5 per cent contraction of Indian economy in the current fiscal, on account of slump in economic activities and very stringent lockdown policy.

This is substantially lower than 0.8 per cent growth for 2020-21 fiscal projected in April.

Fitch said it has made further cuts to world GDP forecasts in its latest Global Economic Outlook (GEO) for May, but the slump in global economic activity is close to reaching its trough.

"The biggest forecast cut was to India where we now anticipate a 5 per cent decline in the current financial year (ending March 2021) in contrast

Topics : Lockdown Fitch Fitch Ratings India economy

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