In its report titled ‘APAC Economic Outlook: The Delta Roadblock’, Moody’s Analytics said social distancing is weighing in the current quarter, but economic recovery will resume by the end of the year.
Moody’s Analytics on Monday said a second wave of COVID-19 could inflict more permanent damage on the Indian economy and exports would once again be the cornerstone of recovery.
In its report titled ‘APAC Economic Outlook: The Delta Roadblock’, Moody’s Analytics said social distancing is weighing in the current quarter, but economic recovery will resume by the end of the year.
The delta version of COVID-19 is now among the factors adversely affecting the 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 slowdown in the second quarter. last years.
In India, where exports make up a relatively small portion of the economy, higher commodity prices have increased the value of exports. This is a factor that helped India rejuvenate after the first devastating wave of COVID-19.
“While its second wave, which is now coming to an end, may cause more permanent damage to the economy as the one-two punch of the pandemic hit small enterprises very hard, exports will once again be the foundation for recovery,” it said.
With regard to vaccination, Moody’s Analytics, a financial intelligence company, said that India is struggling to accelerate the pace of vaccination.
Global economic recovery continues at a solid pace, but will not be reflected at a high level in the near future in parts of Asia
It said social distancing restrictions are now in place, especially in Southeast Asia as the delta version of COVID-19 has spread across the region.
Moody’s Analytics said global GDP this year would be in the range of 5-5.5 per cent, well above its expected 3 per cent growth rate as the recovery from last year’s pandemic slowdown continues.
“Global trade continued to improve sharply in the second quarter of this year. Global industrial production is also still growing, although now at a slower pace than business trade. The nexus in global supply chains slows many manufacturing processes. ”
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