The corona virus can have a huge impact on the country’s economy. From the data released by the government on Friday for the last quarter of the last financial year and the entire year, it is clear that we have entered the COVID-19 era with a very weak economy.
The growth rate of GDP in the January-March (2020) quarter has been just 3.1 percent and the rate of economic growth during the whole year 2019-20 has been 4.2 percent. Whereas in its previous year 2018-19, a growth rate of 6.1 was achieved.
This rate of economic growth is the lowest level in the last 11 years. At the same time, these figures also show that the economic growth rate has been decreasing for the last eight quarters and it is expected to go down further in the April-June quarter and the year 2020-21.
This situation will not only dispel the dream of becoming a $ 5 trillion economy by the year 2025, but it will also give a deep rebuke to the efforts to quickly remove poverty and unemployment from the country.
The construction sector, which provides employment on a large scale, declined by 2.2 per cent as compared to an increase of 6 per cent in the same period last year.
The growth rate of services like hotel-restaurant-transport-communication in the service sector has fallen from 6.9 per cent to 2.6 per cent. The growth rate of the financial services sector has come down from 8.7 percent to 2.4 percent.