Global Economy to go in Recession due to Covid-19 says RBI

The Reserve Bank of India (RBI) said that the global economy is expected to go in recession in 2020 as indicated by post Covid-19 projections. Experts are predicting huge down fall of Economy as Covid-19 Pandemic has strong impact on Global Production, Tourism, Trade and supply chain management. India's growth also remains grim even when inflation projections and risks are balanced.

Due to Lock down the demand of petrol and diesel was reduced and also sharp fall in international crude oil prices helps countries trade but it doesn't stop from shutdown and loss. The RBI also said that the growth of Indian economy depends on the speed of recovery and normal economic activity process which was disturbed due to covid-19. 

Once normalcy is restored the Government's fiscal measures and RBI's liquidity and monetary actions would mitigate the adverse impact on domestic demand. The RBI expects Inflation will move in the range of 3.6%-3.8%. for 2021. CPI inflation is also expected to ease from 4.8% in Q1 to 4.4% in Q2, 2.7% in Q3 and 2.4% in Q4  of 2020-21 as according to various surveys and estimations. The aggregate demand may weaken or stronger as uncertainty and ambiguity on inflation  as covid-19 in a big way as it is prevailing supply disruptions and  bottle necks.