effect of corona virus on GDP
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Answer:
effects of the pandemic on economic activity are being felt far and wide, far beyond the airline, travel, tourism and hospitality sectors. Analysts see some impact to the January-March 2020 quarter gross domestic product. But the really deep cut will be seen in the April-June quarter (the first quarter of 2020-21), further exacerbating the slowdown in consumption and activity being witnessed in the Indian Economy.
“On the demand side, inoperability analysis for three sectors, namely transport, tourism and hotels, show significant impact on demand and hence output. On an aggregate basis, we estimate that the impact of a 5 per cent inoperability shock could be 90 basis points on GDP from Trade, Hotel, Transport, Storage and Communication segments, that could spread over FY20 and FY21, with a larger impact in FY21,” said Soumya Kanti Ghosh, Chief Economic Advisor, State Bank of India.
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Sectors such as tourism, aviation, hospitality and trade will face the first brunt of the severe travel, assembly and activity curbs imposed by the governments across the world, followed by a wider impact on other sectors as economic activity stalls
Moody’s has downgraded India’s growth to 5.3% in 2020 due to downside risks of Covid-19. “By first quarter in the next fiscal, we can definitely see a shaving off of at least half a per cent of GDP, which could go up to 1% depending on how much it permeates through the economy,” said Madan Sabnavis, chief economist at CARE Ratings, pencilling in 5.5% growth for FY21.
Answer:
It's harming our GDP in a lot ways. Our economy is decreasing a lot due to this global pandemic. Yes now it's affecting in lot many ways. online business has been stopped. Other than groceries other all kinds of shops are closed people have been facing difficulties. And how many days one can depend upon one's saving. So let's hope that this ends soon and our economy can also grow faster. Let's pray for everyone well being. thank you so much.