SBI Sees GDP Growth Inching Up Due To ‘Statistical' Tailwind...

...but cautions on Covid-19 headwind, though with a lag

- 

The statistical benefits of the steep downward revision in FY2019 growth to 6.1 per cent from 6.8 per cent could push up FY2020 GDP growth to 4.7 per cent from 4.6 per cent, says ‘Ecowrap’, State Bank of India’s economic research report. However, the report cautioned that the impact of coronavirus on India could happen with a lag.

“...We were earlier anticipating a downward revision in FY2020 growth rate from 5 per cent to 4.6 per cent, but now the statistical benefits of a downward revision in FY2019 GDP growth could push up FY2020 GDP growth 4.7 per cent. We anticipate upward revisions in Q1 (April-June) and Q2 (July-September) FY2020 GDP,” said the report.

In India, GDP data are revised six times and there are instances wherein quarterly GDP figures have been changed more than four times.