Moody's Investors Service on Tuesday slashed India growth forecast for calendar year 2020 to 0.2 per cent, from 2.5 per cent projected in March. For 2021, Moody's expects India's growth to rebound to 6.2 per cent. In its report titled - Global Macro Outlook 2020-21 (April 2020 update), Moody's has lowered G-20 advanced economies as a group to contract by 5.8 per cent in 2020.
Moody's said the economic costs of coronavirus crisis amid the near shutdown of the global economy are accumulating rapidly. It expects G-20 advanced economies as a group to contract by 5.8 per cent in 2020.
Even with a gradual recovery, 2021 real GDP in most advanced economies is expected to be below pre-coronavirus levels. China's economy is forecast to grow by 1 per cent in 2020.
"India extended a nationwide lockdown to 40 days from 21 days, but relaxed restrictions in rural areas to facilitate agricultural harvesting in the second half of April. The country has determined that many of these areas are free of the virus. India also plans a phased opening of different regions while continuing to carry out identification and contract tracing," Moody's said.