On June 30, 2020, Fitch Ratings Inc., an American credit rating agency in its June 2020 update of Global Economic Outlook (GEO), has lowered India’s growth forecast for FY 2021-22 to 8% from 9.5 % projected in may 2020 due to the toughest lockdown imposed by the central government to prevent the outbreak of Coronavirus (COVID-19).
However, Fitch has not made any change in its previous estimate of a – 5% in the economy during the current financial year (FY 2020-21).
- Global Projections: Fitch has also predicted growth in the global economy at 4.9 % in 2021& in 2022 it is estimated to be 3.4 %.
Past & future estimated growth rate:
The projected growth rate of Indian economy in 2019-20 is 4.2 % & will grow at 5.5 % in 2022-23.
The agency has forecast a 13.8 % decline in the economy in the July-September quarter 2020 as compared to 0.3 % in April-June quarter 2020.
Other agencies estimates:
Earlier, S&P (Standard & Poor) had forecast – 5% in the Indian economy in the current financial year (FY21) & an increase of 8.5 % in FY 22.
At the same time, rating agency Moody’s has forecast – 4% in the economy in the 2020 due to the COVID-19 epidemic & around 8.7% in the 2021.
About Fitch Ratings:
Headquarters– New York, US
President– Ian Linnell