The Reserve Bank of India (RBI) on Thursday said its forward-looking surveys have indicated that consumer confidence collapsed and inflation perception and expectations increased in May. The survey also said the real GDP is likely to contract by 1.5 per cent in 2020-21.
Consumer confidence collapsed with the current situation index falling from 115.2 in March to 97.9 in May, the lowest level since March 2014, the RBI’s survey of professional forecasters on macroeconomic indicators said. Future expectations plummeted to 63.7 from a low level of 85.6, further into the pessimistic zone, it said. It added that real GDP, which is expected to contract by 1.5 per cent in FY21, is likely to revert to growth terrain next year, when it is likely to grow by 7.2 per cent.
Real gross fixed capital formation is likely to register negative growth of 6.4 per cent in 2020-21 but likely to grow by 5.6 per cent in 2021-22.
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