BofA Securities report claims one-month national lockdown will result in loss of 1-2% of GDP

Second wave of corona

Second wave of corona

BofA said that there is a risk in the path of revival of the economy due to the rise in the epidemic. The brokerage company said that a one-month national level lockdown would result in a loss of one to two percent of GDP.

New Delhi. Bank of America (BofA) Securities, a Wall Street brokerage company, believes that an increase in Corona virus cases is due to an estimated three gross domestic product (GDP) in the fourth quarter of March 2020-21. Percent growth rate is difficult to achieve. BofA said that there is a risk in the path of revival of the economy due to the rise in the epidemic. The brokerage company said that a one-month national level lockdown would result in a loss of one to two percent of GDP.

The BofA report says that growth is still sluggish and important economic indicators have declined. The growth of credit is quite weak. Concern has increased on the growth front due to increasing cases of infection. The activity indicator of BofA India, based on seven factors, came down to one percent in February. In January it was 1.3 percent. Four of the seven factors in India’s activity index in February have been sluggish compared to the previous month.

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It has been said in the report that the projected growth of three percent of the actual GVA in the March quarter from this is at risk. The index was positive for the first time in 2020-21 in December 2020. Earlier, it had declined for nine consecutive months. The report states that there is a risk of revival due to increasing cases of epidemics. We estimate that a one-month lockdown at the national level will result in a loss of one to two percent of GDP.




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