Fitch said the medium-term recovery will be slow. "Supply-side potential growth will be reduced by a slowdown in the rate of capital accumulation - investment has recently fallen sharply and is likely to see only a subdued recovery."
India’s GDP shrank by a staggering 24 per cent year-on-year amid the imposition of one of the most stringent global nationwide lockdown.
Fitch said US productive potential growth has been revised to 1.4 per cent from 1.9 per cent, the UK to 0.9 per cent from 1.6 per cent and the eurozone (weighted average of Germany, France, Italy and Spain) to 0.7 per cent from 1.2 per cent.
Fiscal metrics have deteriorated significantly, notwithstanding the government's expenditure restraint, due to the impact of the severe growth slowdown on revenue, the fiscal deficit and public-sector debt ratios.
Threats to global growth outlook from protectionism have become much more significant in recent months which raise the possibility of disruptions to trade and investments, according to Fitch Ratings Inc.
It said banks' impaired loans ratio has declined to 10.8 per cent in first nine months (April to December) of fiscal 2018-19 from 11.5 per cent in the financial year ending March 2018 (FY 18), marking a reversal in trend.
Some US corporations have tariff mitigating strategies, like long-term contracts, diversified end-markets and localised production already in place. China-based and other non-US production facilities allow American companies to sell into China tariff free, helping to circumvent retaliatory actions.
New Delhi: The credit rating agency Fitch has said that India’s economic growth will accelerate to 7.3% in the current...
New York, Mar 7: Global rating agency Fitch today said, Indian economy will grow by 7.1 per cent in the...