COVID toll on economy deepens: poll

Respondents in Reuters survey say jobs crisis may worsen; on average see full-year growth at 9.8%

India’s economic outlook has weakened again, albeit slightly, with worst-case scenario forecasts suggesting the toll from the COVID-19 pandemic could be much deeper, stoking fears the job crisis may worsen over the coming year, a Reuters poll found. Renewed restrictions to curb the current wave have stalled economic activity, leaving many millions out of work and pushing economists — who have broadly been bullish — to downgrade their views for the second time since early April. The May 20-27 poll showed the outlook for the current quarter was lowered to 21.6% annually, and to 9.8% on average for this fiscal year, down from 23% and 10.4% respectively a month ago. The economy was then forecast to grow 6.7% next fiscal year, compared to 6.5% predicted previously.