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Moody's cuts India's GDP growth forecast to 2.5 per cent

Khaleej Times logo Khaleej Times 27/03/2020 Staff Reporter
Moody's cuts India's GDP growth forecast to 2.5 per cent © Provided by Khaleej Times Moody's cuts India's GDP growth forecast to 2.5 per cent

Moody's on Friday slashed India's gross domestic growth (GDP) growth forecast from 5.3 per cent to 2.5 per cent this year.

The credit rating agency drastically cut the GDP growth rate forecast due to the impact of the Covid-19 coronavirus, which has had a significant impact on global economy.

The firm also added that India was likely to see a sharp fall in incomes at the estimated 2.5 per cent growth rate.

The latest cut in growth rate was announced following a 75 basis points repo rate cut move by the Reserve BankĀ of India.

The RBI reduced the key lending rates from 5.15 per cent to 4.5 per cent in response to the coronavirus outbreak.

muzaffarrizvi@khaleejtimes.com

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