Goldman Sachs, a leading global financial services firm forecasted that in the second quarter of the Financial Year, the GDP may shrink to an annualised 45 per cent from the prior three months. Earlier the firm had forecasted GDP to slump by 20 per cent. Its recent forecast of India’s GDP foretells that India is heading towards the worst recession in the near future.
According to its observations and monitoring of all the tranches of 20 crore relief package announced by the Indian government, the revival and reform steps are more focussed on medium-term impact than the focus on the immediate support. The firm does not anticipate an immediate revival of the economy.
It believes that rebounding of the economy is unlikely to happen all of a sudden because of the nature of the reforms taken by the government which do not address the immediate needs.
The leading firm is also monitoring the implementation of all government steps targeted at economic revival, to also predict its impacts on medium-term outlook which is the focus area of government right now.