RBI assessment: Second COVID wave trimmed down Rs 2 lakh cr output

Jun 18 2021 07:56 AM
RBI assessment:  Second COVID wave trimmed down Rs 2 lakh cr output

NEW DELHI: The overwhelming second wave of the Covid-19 pandemic in April-May is estimated to have cost the nation Rs 2 lakh crore in terms of output, revealed an assessment made by the Reserve Bank.

The second wave's toll is mainly in terms of the hit to domestic demand on account of regional and specific containment rather than a nation-wide lockdown, it said. "The impact of the second wave is hence estimated at about Rs 2 lakh crore of lost 2021-22 output," said a recent article on the 'State of Economy', written by functionaries of the central bank. Moreover, this wave has fanned into smaller cities and villages, sapping rural demand. The support from government spending may also moderate from the extraordinary expansion undertaken last year, it said.

Moreover, this wave has fanned into smaller cities and villages, sapping rural demand. The support from government spending may also moderate from the extraordinary expansion undertaken last year, it said.

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