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Covid crisis poses economic risk in Q1 FY22; muted impact likely: FinMin
By IANS |
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Covid crisis poses economic risk in Q1 FY22; muted impact likely: FinMin. Image Source: IANS News
New Delhi, May 7 : As states take to lockdowns amid the severe Covid crisis, the Finance Ministry in a report has said that second wave of the Covid-19 poses downside risk to economic activities during April-June, although the impact is expected to be muted compared to that in the first wave.
The Monthly Economic Review for April 2021 published by the Department of Economic Affairs (DEA) said that learning to operate with COVID-19 provides a silver lining of economic resilience amidst the second wave.
The finance ministry on Friday said that the second wave of coronavirus (Covid-19) has posed a downside risk to economic activity in the April-June quarter of financial year 2022. However, it expects a muted economic impact as compared to the first wave. The finance ministry’s Department of Economic Affairs (DEA) in its Monthly Economic Review for April said “the second wave in India is witnessing a much higher caseload with new peaks of daily cases, daily deaths and positivity rates and presents a challenge to ongoing economic recovery. With infections forcing localised or state-wide restrictions, there is a downside risk to growth in the first quarter of FY22. However, there are reasons to expect a muted economic impact as compared to the first wave. The experience from other countries suggests a lower correlation between falling mobility and growth as economic activity has learnt to operate ‘with Covid-19,” the report said.
COVID-19 crisis poses economic risk in Q1 FY22; ‘muted impact’ likely: FinMin
By IANS| Posted by Mansoor | Updated: 7th May 2021 8:35 pm IST Representative Image Photo: PTI
New Delhi: As states take to lockdowns amid the severe COVID-19 crisis, the Finance Ministry in a report has said that second wave of the COVID-19 poses downside risk to economic activities during April-June, although the impact is expected to be muted compared to that in the first wave.
The ‘Monthly Economic Review’ for April 2021 published by the Department of Economic Affairs (DEA) said that learning to “operate with COVID-19” provides a silver lining of economic resilience amidst the second wave.