Sharper contraction of India s GDP expected in FY21
By IANS |
Published on
Wed, Feb 10 2021 20:42 IST |
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India s FY21 GDP now expected to contract by 7.8%: Ind-Ra. Image Source: IANS News
New Delhi, Feb 10 : The Indian economy is likely to witness a sharper contraction in the current fiscal as the Global Economic Conditions Survey shows that it is likely to contract by around 10 per cent, higher than the official estimates.
Official estimates project a contraction of around 7 per cent in FY21.
The survey, conducted by the Association of Chartered Certified Accountants and the Institute of Management Accountants, noted that South Asia has been hit hard by the pandemic as economies reliant on services and tourism are prevalent in the region.
Negative interest rates are “unlikely” to come into force this year as the UK economy has proven to be more “resilient” than expected, says KPMG UK’s chief economist, Yael Selfin.
There was speculation that negative rates could be introduced in May after a speech by Silvana Tenreyro, member of the Bank of England Monetary Policy Committee, suggested she would be open to the prospect of negative rates.
However, figures from the Office of National Statistics (ONS) found inflation increased from 0.6 percent in November 2020 to 0.8 percent in December 2020, suggesting the economy is strong enough to get by without a further rate cut.
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