Moody's Investors Service has slashed India's Gross Domestic Product (GDP) growth forecast for 2020 to 5.4 per cent. It had earlier predicted a GDP growth of 6.6 per cent. Moody's has also cut the 2021 GDP growth from 6.7 per cent to 5.8 per cent.
Moody's said that the weakness in global economy due to the impact of the novel coronavirus outbreak could hurt India's recovery, as mentioned in a report in Moneycontrol. It added that any recovery in the country may be lower than expected.
The business and financial services company said that it expects G-20 economies to collectively grow at an annual rate of 2.4 per cent in 2020. The firm has also forecast a downward GDP growth for China at 5.2 per cent in 2020, and a growth of 5.7 per cent in 2021. Mopdy's stated that the fear of coronavirus contagion will negatively affect commerce in China.
Moody's said that coronavirus is posing a risk to the stabilisation of global growth that came from a truce following the US-China trade war.