Consumption Hit From India’s Virus Wave Seen Denting Economy
A worker guides people that have received the Covid-19 vaccine to an observation area at a vaccination site at the DLF Mall of India in Noida, Uttar Pradesh, India.
Photographer: Anindito Mukherjee/BloombergThis article is for subscribers only.
India’s second wave of virus cases will hit the economy by prompting consumers to save rather than spend, unlike last year’s contraction that was driven mainly by supply disruptions, according to a research report.
The economic drag from the pandemic in the current quarter will be dominated by demand destruction or deferment of expenditures, said QuantEco Research economist Yuvika Singhal, who downgraded her full-year growth forecast for this year by 150 basis points to 10%.