Fitch changes GDP growth estimates
Fitch Ratings has raised India’s growth forecast for the next fiscal year 2021-22 to 12.8 per cent. Earlier the rating agency had projected a growth rate of 11 per cent in the next financial year.
The rating agency said that with the revival in the second half of 2020, gross domestic product (GDP) has reached its pre-epidemic level. In such a situation, we have revised the estimate of 2021-22 growth rate from 11 percent to 12.8 percent.
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With this, Fitch said, “We estimate that India’s GDP will be below our pre-epidemic estimate.” The GDP growth rate in December surpassed the pre-epidemic level. GDP grew by 0.4 percent on an annual basis during the quarter. This led to a decline of 7.3 percent in GDP in the previous quarter.Economy is booming
The rating agency said that in the second quarter of the calendar year of 2020, the Indian economy went into recession due to lockdown, but after that it recovered faster than we had anticipated. Fitch said the economy has improved rapidly in the final months of 2020, following a decrease in infection cases and a relaxation in the states and union territories.
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Growth of China and America
Along with India, Fitch has predicted the GDP growth rate of America to be 6.2 percent in FY22. The agency had earlier predicted the US economic growth rate to be 4.5 percent. At the same time, the economic growth of China was estimated to be 8.4 percent and the GDP of the European Union was increased by 4.7 percent. The agency had earlier predicted 8% economic growth for China. At the same time, the European Union’s economic growth estimates have not been revised.