Moody’s said as the number of daily reported Covid-19 cases continues to increase, the possibility of renewed lockdown
measures presents downside risk to its forecasts.
“We see a risk that growth rebounds more gradually than in other major emerging economies, and remains below our previous expectations, held back by an increasingly impaired financial system, and limited fiscal capacity to provide support,” the report said.
CARE Ratings, meanwhile, said that its latest forecast assumes no fresh fiscal stimulus outside the Budget and measures already announced, even though there have been indications of a further round of measures. On September 8, Fitch cut India’s GDP forecast
to a decline of 10.5 per cent from 5 per cent, and India Ratings, Fitch’s wholly owned Indian subsidiary, predicted a sharper fall of 11.8 per cent. Goldman Sachs, which had earlier estimated an 11.8 per cent contraction, cut it to 14.8 per cent.
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