Moody's cuts India 2020 GDP forecast to 2.5%; global growth to dip to -0.5%

Over the next few months, Moody's expects job losses across countries to accelerate

Moody’s Investor Service (Moody’s) has slashed its economic growth forecast for India to 2.5 per cent for calendar year 2020 (CY20) even as it expects the growth to bounce back to 5.8 per cent in 2021 (CY21). At the global level, it expects a GDP growth of negative 0.5 per cent in CY20, before bouncing back in CY21.

The downward revision in growth rates for CY20 comes in the backdrop of coronavirus (Covid-19) pandemic that has paralysed economic activity not only in India, but across the globe. Moody's expects the growth in G-20 economies to experience an unprecedented shock in