Economic recovery likely to be gradual due to rising COVID cases: RBI Governor

Governor of Reserve Bank of India (RBI) Shaktikanta Das on September 16 said India's economic recovery will be gradual since the country is reopening in wake of rising COVID cases, adding that the global economy suffered the sharpest contraction in April-June 2020 quarter. 'High frequency indicators of agricultural activity, Purchasing Managers Index for manufacturing, certain private estimates for unemployment point to some stabilisation of economic activity in 2nd quarter of current year. Contractions in many other sectors simultaneously easing. The recovery is not yet fully entrenched. In some sectors, the optic noticed in June and July appears to have levelled off. By all indications, the recovery is likely to be gradual as efforts towards reopening of the economy are confronted with rising infections,' Das said at a FICCI event via video-conferencing on September 16. He further said, 'Global economy estimated to have suffered sharpest contraction in living memory in April-June 2020 on seasonally adjusted quarter on quarter basis. World merchandised trade estimated to have registered steep year on year decline of over 18% in 2nd quarter of 2020 calendar year. High frequency indicators point to a trough in global economic activity in April to June quarter and a subsequent recovery is underway in several economies such as USA, UK, Euro area and Russia.'