Citi and ICICI Lower India Growth Projections on Virus Rise

Citi and ICICI Lower India Growth Projections on Virus Rise

While the economic impact of the omicron outbreak in the current quarter could be lower than previous waves, activity in the last three months was weak, Citi economists Samiran Chakraborty and Baqar M Zaidi wrote in a research report Jan. 9. They lowered their forecast for the current fiscal by 80 basis points to 9%, and pegged next year’s expansion at 8.3%, from 8.7% earlier.

A sharp ascent in Covid cases in India is seen harming the economy’s development possibilities, albeit milder than during the past waves. Economists, including those at Citigroup Inc., India Ratings and Research Pvt., and ICICI Bank Ltd., have brought down their GDP gauges after official data Friday showed Asia’s third-biggest economy will probably extend by 9.2% in the financial year to March – – a speed that is more slow than the 9.5% recently expected by the nation’s central bank, just as the International Monetary Fund.

The daily new cases of coronavirus in the South Asian nation have gone up from about 6,500 two weeks ago to more than 170,000 now — the sharpest rise since the start of the pandemic about two years ago. The result has been a return of lockdowns in several parts of the country.

“There are reasons to be hopeful of a less-disruptive Covid wave,” Chakraborty and Zaidi wrote. “These include lower hospitalization rates, shorter Covid wave cycle period, higher vaccination coverage, and weakening link between Covid and activity.”

Others at the BofA Securities Inc. and Deutsche Bank AG have retained their projections for now, while flagging downside risks to India’s world-beating growth.

“Some negative impact on activity is probable, but the rebound can also be relatively quick,” economists led by Aastha Gudwani at BofA wrote in a report Jan. 10. Downside risks are growing, but it’s too early to quantify, they said.

But there is a broad consensus that the impact of this wave will be mild.

An impact is expected in the current quarter, Radhika Rao of DBS Bank Ltd. said in an interview to Bloomberg Television Monday. But “the impact of subsequent waves has been shallower,” she said.

Disclaimer: If you need to edit or update this news from compsmag then kindly contact us Learn more

For Latest News Follow us on Google News


Latest Headlines
  • Show all
  • Trending News
  • Popular By week
PUBG is currently available for free on all platforms
PUBG is currently available for free on all platforms
With a more slowed-down tactical pace, it offers an alternative to more action-packed and gung-ho battle royale games like Call of Duty: Warzone and Apex ...
The latest update for Destiny 2 prevents new players from being placed into the Dares of Eternity
The latest update for Destiny 2 prevents new players from being placed into the Dares of Eternity
Various Dares of Eternity foes also have shields that can only be broken with certain types of heavy weapons – you can see how under-levelled players with ...
Fire breaks out inside West Monroe business, no injuries
Fire breaks out inside West Monroe business, no injuries
Copyright 2022 KNOE. All rights reserved. It is believed by the family that there was an electrical issue that sparked the fire. No injuries have been ...
NVIDIA brings Android 11 to the table.  All SHIELD TV models will receive an update to version 9.0
NVIDIA brings Android 11 to the table. All SHIELD TV models will receive an update to version 9.0
Also, a new Energy saver setting for additional power customization is included in the update, along with a Stadia button support to Xbox, PlayStation, and ...
After phone companies complained that it prevents them from tracking people, Apple iPhone privacy feature may be prohibited
After phone companies complained that it prevents them from tracking people, Apple iPhone privacy feature may be prohibited
Its intention is to stop network providers and websites from tracking users’ IP address and DNS records, which makes it harder for them to build profiles of ...
This year, RetroArch hopes to make it possible to play authentic Nintendo 64 cartridges on PC emulators
This year, RetroArch hopes to make it possible to play authentic Nintendo 64 cartridges on PC emulators
So RetroArch is partnering with “a hardware manufacturer for a commercial release – bringing the peripheral into everyone’s hands – while still keeping a ...
LIC Housing Finance Share Price: Buy LIC Housing Finance, Target Price Rs 530: Emkay Global
LIC Housing Finance Share Price: Buy LIC Housing Finance, Target Price Rs 530: Emkay Global
Promoter/FII Holdings Promoters held 45.24 per cent stake in the company as of 30-Sep-2021, while FIIs owned 24.07 per cent, DIIs 14.96 per cent. ...
Huawei ranks 5th in US patents in sign of Chinese growth
Huawei ranks 5th in US patents in sign of Chinese growth
Huawei’s success in obtaining patents comes even as its networking equipment is shut out of the American market and it’s been cut off from procuring ...
SEC proposes changes to money market fund rules – finance and banking
SEC proposes changes to money market fund rules – finance and banking
Footnotes In March 2020, institutional prime and tax-exempt money market funds experienced large outflows, which contributed to stress on short-term funding ...
COVID-19 Update: Delhi has 27,561 cases, second highest daily increase so far, 40 people have died
COVID-19 Update: Delhi has 27,561 cases, second highest daily increase so far, 40 people have died
Wednesday’s single-day count of 27,561 cases is the highest since April 20, when the city saw 28,395 infections. Of the 133 Covid deaths recorded in the ...
Show next
We will be happy to hear your thoughts

      Leave a reply

      Compsmag - Latest News In Tech and Business
      Logo