Icra scales up projection for GDP contraction to 11% from 9.5% earlier

Attributes move to continued spread of Covid-19 pandemic

Rating agency Icra has revised its forecast for the contraction in the gross domestic product (GDP) to 11 per cent from its earlier assessment of 9.5 per cent for 2020-21, with fresh Covid-19 infections remaining elevated at the end of the second quarter of the year. With this, most agencies now projected double digit de-growth in GDP for the current financial year (see chart).

However, Icra retained its earlier forecast of fall in GDP at 12.4 per cent in the second quarter. The agency revised its projections for GDP decline to 5.4 per cent from 2.3 per cent for the third