Current Context: The Asian Development Bank (ADB) has forecasted that India’s GDP to contract 9% for the financial year 2020-2021.
- This projection by ADB is published in its ‘Asian Development Outlook 2020 Update-September 2020’.
- ADB has mentioned the reason that the economic growth has slowed down because of the outbreak of coronavirus, which has affected the economy of India.
- However, ADB has forecasted that GDP will grow by 8% in FY 2021-2022.
- As per projection, inflation is expected to reduce in the remainder of FY2020 to 4.5% with rising food prices and decreased economic activities and then it will reduce to 4% in FY 2021.
- As per ADB, the current account deficit for India is expected to shrink to 0.3% of GDP for this fiscal year. In FY 2022, it will then widen to 0.6% of GDP.
- ADB has also forecasted that developing Asia’s GDP to contract by 0.7% in FY 2020.
- Static Part:
- HQ of ADB: Mandaluyong, Philippines
- President of ADB: Masatsugu Asakawa
Question:
Q.1 The Asian Development Bank (ADB) has forecasted that India’s GDP to contract ___% for the financial year 2020-2021?
a. 8.5%
b. 9%
c. 10.5%
d. 9.5%
a. 8.5%
b. 9%
c. 10.5%
d. 9.5%
