Amid spike pandemic cases compelling many states to curb mobility and businesses, a report has said these localised lockdowns in key economic hubs can cost the economy an average of USD 1.25 billion each week and may shave off 140 bps from the Q1 nominal GDP of Q1Fy22.
And in the case the restrictions shall remain in place until May, the cumulative loss of economic as well as commercial activity could be around USD 10.5 billion or around 34 bps of nominal GDP, said the British brokerage firm Barclays.
The country leads the entire world in new virus caseload now, higher than the second and third most hit nations of the US and Brazil with a daily infection of over 1.62 lakh cases on Tuesday and 879 deaths.
These numbers propelled the total caseload to 1.37 crore so far, and the death toll at 1,71,058, according to the official data from the Union health ministry this morning.
The increasing lockdowns/mobility restrictions and night curfews across key economic hubs in the past few days are likely to cost the economy USD 1.25 billion a week, up from USD 0.52 billion a week earlier. On a quarterly basis, the impact will be much higher -- a 140 bps loss of nominal GDP in the first quarter, Barclays said in the report.
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