India is expected to see the deepest recession due to the nationwide lockdown, severely affecting the economic activity of the country.
This was reported by the financial services company Goldman Sachs.
As per a report released by the company on Sunday, Goldman Sachs economists Prachi Mishra and Andrew Tilton predicted that India’s Gross Domestic Product (GDP) will contract by an annualised 45 per cent in the second quarter from prior three months or the June quarter.
They also estimated that real GDP will fall by 5 per cent in the 2021 fiscal year, which would be deeper than any other recession India has ever experienced.
According to economists, the economic packages announced by the central government as a measure of economic development in the country is unlikely to make a big impact on reviving growth.
There have been a series of structural reform announcements across several sectors over the past few days,” they wrote.
“These reforms are more medium-term in nature, and we, therefore, do not expect these to have an immediate impact on reviving growth. We will continue to monitor their implementation to gauge their effect on the medium-term outlook,” they added.
Goldman Sachs’ economic forecast came just on the day India announced the fourth phase of nationwide lockdown which will continue till May 31.