MASSIVE HIT

India’s Economy to Shrink by 45% This Quarter, Goldman Sachs Says

Investment bank Goldman Sachs has forecast a dire impact on India from COVID-19.

India’s economy is set to contract by 45 percent in the second quarter, Goldman Sachs has forecast in a new report. The world’s biggest democracy has been hammered by a total lockdown, which brought virtually all economic activity to a shuddering halt and saw millions of migrant day-rate workers forced to walk hundreds of miles from big cities back to their villages. Goldman predicted India’s economy would probably rebound strongly as restrictions ease in the coming months, but forecast that India’s gross domestic product will contract by 5 percent over the financial year, which would mark the deepest recession that India has ever recorded. Despite tough lockdown measures, India’s infection rates have continued to escalate as the virus spreads through densely populated slums and working class neighborhoods.