Pandemic Impact On Economy

 

AS CORONAVIRUS SPREADS,ECONOMIC GROWTH TO DECLINE BY 16.5%, SBI REPORTS

 

Corporate earnings fall more than 25% in revenues and more than 55% in profits.

India will see a contraction in its economic growth which will be nothing like in previous years. It will be the first of its kind in many years.” India's GDP is expected to contract by 16.5 per cent during the first quarter of current fiscal as the Covid-19 pandemic is spreading at a much faster rate after the opening up of the economy,"  Ecowrap, SBI’s research report said on Monday.  Soumya kanti  gosh, Group chief economic advisor said, "This indicates that rural recovery will not have much impact on GDP growth. Thus it is of utmost importance to unveil further steps to support growth." This indicates that the rural sector will be unable to recover from that.

The bottom line is, that we will have to face an economic recession in the mid of this pandemic or after this pandemic is over. The urban is likely to recover from it but nothing can be said about the urban sector yet.