Goldman Sachs Estimates Worst Ever Financial Crisis inIndia

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MUMBAI| Goldman Sachs has slashed the India’s GDP for financial year 2021 to 1.6% from pervious forecast of 3.3, made just less than a month ago. This has been termed as the slowest growth of the country in post-war era. It will be slower than what the nation has experienced during the recession times of 1970s, 1980s and during 2009 global financial crisis.

“Notably, as our global team has argued, the global COVID-19 crisis — or more precisely, the response to that crisis — represents a physical (as opposed to purely financial) constraint on economic activity that is unprecedented in postwar history,” Goldman said.

India’s economic activity came to a virtual standstill, when a 21 day lockdown was announced on March 25 due to the spread of corona virus pandemic in the country. The market has already fallen by more than 20 percent in March alone.

Goldman Sachs said that over the past two weeks, their global team was forecasting the world to be in a recession in 2020, with risks remaining on the downside.

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