India is now the world's third worst-affected country with nearly 7,00,000 COVID-19 cases
India's gross domestic product (GDP) has been predicted to contract 4.5 per cent in 2020, the finance ministry said on Monday quoting International Monetary Fund (IMF) data. However, early green shoots of economic revival emerged in May and June, and the government's commitment towards structural reforms and supportive social welfare measures will help in building on these green shoots, the ministry said in its monthly macroeconomic report. The report comes days after the government declared Unlock 2.0, a further easing of restrictions imposed in March to curb the spread of the coronavirus pandemic, which has pushed an already-slowing economy into a standstill with thousands of job losses. Many economists say it will take much longer for the economy to return to its pre-pandemic potential.
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The IMF has predicted a contraction of 4.5 per cent (-4.5 per cent growth) for India in 2020, a 6.4 percentage point downward revision compared to the April 2020 forecast, the Department of Economic Affairs said in its macroeconomic report for June. It also said that the uncertainty caused by the absence of a vaccine against the coronavirus pandemic poses a "serious challenge" to the economy. (Also Read: