According to a report by Moody’s Analytics, the projection is better than the domestic economy’s -8.3 percent output in the last quarter of 2020.
Moody’s Analytics said the risks to recovery have not mitigated due to rising Covid-19 cases and the slow pace of vaccinations in the country.
“The volatile course of the pandemic continues, with the resurgence of Covid-19 cases in India and stronger waves in Japan and the Philippines, among others. High transmission risks from newer variants and slow vaccination rollouts, weakened by supply shortages or logistical snags, remain pertinent factors until countries aggressively move towards herd immunity,” it said.
Moody’s Analytics said risks to recovery have not mitigated.
The government expects the country to bounce back this year with GDP forecast to grow between 6.5-7.5 percent. (PNA)