Macroeconomic report by Finance Ministry 2020

image

India imposed a strict lockdown from 25th March 2020. April 2020 was the month of an economic standstill with restrictions on various activities eased in May 2020. As restrictions were further eased, the country entered the unlock phase in June 2020.

image1 768x499 1

THE SUPPLY & DEMAND SIDE SHOCK

The loss of economic output from more than two months of lockdown was down first triggered from the supply side as labor stayed away from work.
The demand side caused further loss of output as consumption of goods and services dependent on customer mobility fell.
This twin supply–demand shock on output subsequently led to the loss of income, which caused a further decline in consumption resulting in further loss of output.
Owing to this unprecedented COVID – 19 induced supply-demand shocks, IMF’s June 2020 WEO update projects growth of India’s output at (-)4.5% in 2020-21 and
that of the world at (-)4.9%.

image4 768x704 1
image5 768x422 1
image6 300x251 1
image7 768x169 1
image222 300x94 1
image8 300x76 2
image9 300x157 1
image.33 300x136 1
image11 300x142 1
image12 300x174 1
image13 300x152 1
image14 300x205 1

While the biggest reason for the unprecedented contraction is the lockdown forced by the pandemic, economic growth had been slowing down even before that.

image1fgfgfg 768x471 1

For more information visit: https://dea.gov.in/

*image source from Google

Check More News on World Economy:

Add a Comment