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Economy to shrink 5% this year, fiscal stimulus not enough to support growth

city New Delhi India pandemic economy Government growth
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NEW DELHI : S&P Global Ratings on Monday said Indian economy will shrink 5 per cent in the current fiscal, saying the fiscal stimulus worth 1.2 per cent of GDP will not be enough to provide significant growth support.In a report on emerging markets titled 'Financial Conditions Reflect Optimism, Lockdown Fatigue Emerges', S&P said the services sectors, which are large employers, have been severely affected, leading to widespread job losses."Migrant workers have been geographically displaced, and we expect it will take some time to unwind this process.

There will be supply chain disruptions over the transition period," S&P said.The rating agency forecast Indian economy to shrink by 5 per cent in the current fiscal and said growth will rebound.

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COVID-19
United States
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Cases: 46 252 513
Deaths: 750 423
Recovered: 0
India
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Cases: 34 321 025
Deaths: 459 652
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Brazil
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Deaths: 608 235
Recovered: 0
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Deaths: 141 607
Recovered: 0
Russia
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Cases: 8 494 589
Deaths: 237 619
Recovered: 0
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