The People's Bank of China Raises Economic Growth Forecast by 2 Percentage Points

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] The Reserve Bank of India (RBI) raised its economic growth forecast by 2 percentage points on the 4th, stating that the pace of economic recovery after the impact of the novel coronavirus infection (COVID-19) is faster than expected.

According to Bloomberg News, the Reserve Bank of India announced that it adjusted the real gross domestic product (GDP) growth forecast for the 2021 fiscal year (April 2020 to March 2021) from the previous -9.5% to -7.5%, an increase of 2 percentage points.

The Indian government eased related control measures considering the economic damage despite the spread of COVID-19 since May, and the economy gradually revived. In fact, India's GDP growth rate for the third quarter (July to September) this year recorded -7.5%, but it showed significant improvement compared to the second quarter (April to June), which recorded -23.9%.

The Reserve Bank of India also kept the benchmark interest rate, the repo rate, at 4% on the same day. Since March, the Reserve Bank of India has cut interest rates by 1.15 percentage points to stimulate the economy.

In India, recent analyses suggest that the slowdown in the spread of COVID-19 will help economic recovery. According to the Indian Ministry of Health and Family Welfare, the cumulative number of COVID-19 confirmed cases reached 9,571,559, an increase of 36,595 from the previous day. The daily new confirmed cases in India approached 100,000 in mid-September but fell below 50,000 from the end of October.

This content was produced with the assistance of AI translation services.