Leading rating agency S&P Global Ratings has slashed India's economic growth forecast to 5.2 percent for the fiscal beginning April 1. With this, the agency had earlier estimated the country's economic growth at 6.5 percent. The rating agency says that due to the spread of coronavirus, the economy of the world has been affected. Along with this, S&P Global Ratings has predicted a total loss of $ 620 billion in the Asia-Pacific region due to COVID-19 virus.

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There is a possibility of damage to every sector
The agency has said, "There is a possibility of loss in sectors related to a sovereign, bank, corporate and household". At the moment, the agency has not clarified which country in the region will suffer so much due to Coronavirus. The rating agency has said that it has revised its estimates of the real GDP growth rate, inflation rate and policy interest rate of various countries in the Asia-Pacific region. On the other hand, S&P has reduced the growth forecast for 2020-21 to 5.2 percent from the earlier 6.5 percent. In the years that followed, in 2021-22, the rating agency expects India's real growth rate to be 6.9%. Along with this, the rating agency has kept the real growth rate estimate for the current financial year at five percent. According to the agency, the country's GDP growth could remain at seven percent in the financial years 2022-23 and 2023-24.

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Inflation Reduction Estimate
The agency believes that in the next financial year, the average inflation rate may come down to 4.7 percent from 4.7 percent this year. According to the rating agency, inflation will come down to 4.2% in 2021-22. Currently, it is expected to rise to 4.4 percent in 2022-23 and to 4.5 percent in the subsequent financial year.

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