Jakarta, CNN Indonesia –
India take notes Economic growth 20.1 percent in the second quarter of this year. The good economic growth occurred in the midst of a wave-related increase in mobility Covid-19.
Quotes CNN business, Wednesday (September 1), the growth of the gross domestic product (GDP) reflected a big jump after the collapse of the third largest economy in Asia.
“India’s record year-over-year increase in GDP in the second quarter was entirely due to the low base effect,” said Shilan Shah, senior India Economist at Capital Economics.
As is well known, India fell into recession last year. In the second quarter of last year, India recorded an economy of minus 24 percent.
India just got through a slump earlier this year when the Delta variant of Covid-19 arrived. India has reported thousands of deaths from COVID-19 for weeks.
In fact, when the transmission rate of COVID-19 increased, Indian Prime Minister Narendra Modi refused to implement a lockdown. As a result, despite many deaths from the pandemic, India’s economic activity recovered faster when cases increased.
However, Shah estimates that India’s economy contracted 12 percent in the April-June period. “This contraction is huge historically and stronger than we expected,” he said.
ICICI Securities Chief Economics Anagha Deodhar said India’s annual economic growth numbers were weaker than expected.
“Looking at pre-pandemic growth rates, India’s economy is still Rs 3 trillion ($ 41 billion) smaller. Exports are fueling growth as the global economy recovers faster than the Indian economy,” he added.
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