Advertisement
Wednesday, Oct 27, 2021
Outlook.com
Outlook.com

Covid 2nd Wave May Have More Lasting Damage On Economy: Moody's Analytics

Moody's Analytics said social distancing is weighing on the current quarter, but economic recovery will resume by the year-end.

Covid 2nd Wave May Have More Lasting Damage On Economy: Moody's Analytics
In India, where exports make up relatively small shares of the economy, high commodity prices have boosted the value of exports. | Representational Image/ File Photo
Covid 2nd Wave May Have More Lasting Damage On Economy: Moody's Analytics
outlookindia.com
2021-07-26T18:20:18+05:30

The second wave of COVID-19 may have a more lasting damage on the Indian economy and exports will once again be the foundation for recovery, Moody's Analytics said on Monday.

In its report titled 'APAC Economic Outlook: The Delta Roadblock', Moody's Analytics said social distancing is weighing on the current quarter, but economic recovery will resume by the year-end.

The Delta variant of COVID-19 is among factors now adversely affecting economies of the Asia-Pacific (APAC) region, but the economic hit from the current round of movement restrictions in the region will not be as severe as the recessions in the second quarter of last year.

In India, where exports make up relatively small shares of the economy, high commodity prices have boosted the value of exports. This is one factor that helped reinvigorate India after its first devastating wave of COVID-19.

"While its second wave, which is now coming to an end, may have more lasting damage to the economy as the pandemic's one-two punch hit small enterprises very hard, exports will once again be the foundation for recovery," it said.

With regard to vaccination, Moody's Analytics, which is a financial intelligence company,  said India is struggling to accelerate its pace of inoculation.

The global economic recovery is continuing at a solid pace, but parts of Asia will not reflect this in the near term given heightened social distancing restrictions now in place, particularly in Southeast Asia as the Delta variant of COVID-19 spreads across the region, it said.

Moody's Analytics said global GDP this year will be in the range of 5-5.5 per cent, well above its 3 per cent potential growth rate as recovery continues from last year's pandemic recession.

"Global trade continued its rapid recovery well into this year's second quarter. Global industrial production also is still rising, although now at a slower pace than merchandise trade as tie-ups in global supply chains slow many manufacturing processes," it added.

Advertisement

Outlook Newsletters

Advertisement
Advertisement
Advertisement

Read More from Outlook

Bombay High Court Adjourns Aryan Khan's Bail Application Till Tomorrow

Bombay High Court Adjourns Aryan Khan's Bail Application Till Tomorrow

Former Attorney General of India (AGI) Mukul Rohatgi appeared for Shah Rukh Khan’s son Aryan Khan, along with his existing legal counsel comprising Satish Manishinde and Amit Desai.

Explainer | Why A Lawyer Is Seeking FIR Against NCB's Wankhede For 'Extortion' In Aryan Khan Drugs Case

Explainer | Why A Lawyer Is Seeking FIR Against NCB's Wankhede For 'Extortion' In Aryan Khan Drugs Case

On Monday, a lawyer approached the Mumbai police with a complaint seeking registration of an FIR against Sameer Wankhede and five others for extortion in the drugs-on-cruise case.

IPL Controversy: CVC Capital Under BCCI Scanner

IPL Controversy: CVC Capital Under BCCI Scanner

The BCCI on Monday named RPSG Ventures Limited and Irelia Company Pte Ltd. (CVC Capital Partners) as owners of the new IPL teams from 2022.

'TMC & AAP On A Mission To Split Congress Votes And Help BJP In Goa': State Congress Chief

'TMC & AAP On A Mission To Split Congress Votes And Help BJP In Goa': State Congress Chief

Goa Congress president Girish Chodankar strongly asserted that the voters cannot be wooed with false promises and money as people are deeply rooted in the Congress.

Advertisement