A report by domestic rating agency Brickwork said that the country’s real gross domestic product (GDP) growth could go up to 11 per cent in the next financial year, with an improvement in economic activity and a lower comparative base. The report by Brickwork Ratings said that economic activity is gradually reaching a pre-Covid-19 position after the relaxation of sanctions.
Only those areas are still behind where due to the rules of safe physical distance, functioning has not been able to catch up at full speed. The agency said in its report that, “Given the progress made in developing effective vaccines to protect against Covid-19 and indicating a better-than-expected recovery in the domestic economy, we believe the following comparative premise Real GDP (based on constant value) may grow by 11 per cent in 2021-22. This growth will be compared to the projected decline of 7 to 7.5 per cent during the current financial year.
Slow improvement will happen in some areas
According to the first advance estimate of GDP growth for the current financial year (2020- 21) released by the National Statistics Office (NSO), the country’s GDP will decline by a record 7.7 percent.
The rating agency’s report said that the economy will register positive growth in the second quarter of the current financial year. However, in some areas where activities are slow due to physical distance rules, the pace of improvement remains slow.
Agricultural sector will continue to grow
According to the report, despite all these things, the scenario has improved for the next financial year after the vaccine was developed. It said that the agriculture sector will continue to grow by 3.5 per cent in the next financial year.
However, it has said that these estimates are based on the general monsoon and the effective implementation of agricultural reforms. According to the agency, in 2021-22, the industrial sector is expected to achieve 11.5 per cent and services sector 11 to 12 per cent.
Nidhi Malviya is fun loving girl. She writes at NoobFeeds about various topics related to Finance, Technology, Business etc.