Moody’s Investors Service, the world’s largest rating agency, has lowered India’s GDP growth estimate on Thursday. This year i.e. for the current financial year 2019-20.
They have reduced the final estimate from 5.8 percent to 5.6 percent. Earlier in October itself, Moody’s Investors Service lowered its GDP growth estimate to 5.8 percent in 2019-20. But Moody’s has said that economic activities will increase in the year 2020.
Even amongst peers with similar (#Baa2) rating, #India‘s per capita income is the lowest and sovereign debt to GDP the highest. This explains why #Moodys changed the #Rating #Outlook to negative. Are other rating agencies looking to follow suit? If so, Why ? https://t.co/Iii3ihEmsk
— BL Portfolio (@BlPortfolio) November 13, 2019
Therefore, the GDP growth rate in the year 2020 and 2021 is about 6.6 percent and 6.7 percent respectively. But the economic growth rate in the current financial year will be low. Let us tell you that Moody’s recently reduced their outlook about the Indian economy from ‘stable’ (stable) to ‘negative’ (Moodys cut Indias Outlook to Negative from Stable).
They saw the signs of lethargy from last year.
Moody’s said from the middle of 2018, India’s economic growth rate has come down.
In the second quarter of 2019, GDP has come down from about 8 percent to 5 percent and unemployment is increasing.
>> The report said, “There has been a decline in investment activity even before this, but there was a boom in the economy because of strong consumer demand. The problem with the current sluggishness is that this time there is also a decline in consumption.
India’s GDP growth estimate slashed – Moody’s has reduced India’s GDP estimate for the current fiscal from 5.8 percent to 5.6 percent. The agency says that the slowdown in GDP will be more than the previous estimate.
>> On this Moody’s says that ‘we have reduced the estimate of India’s growth rate. According to our estimates, where they estimated India’s GDP at 7.4 percent in 2018, they estimated to be 5.6 percent in 2019.