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NEW DELHI : S&P Global Ratings on Monday estimated the cost of COVID-19 outbreak for 14 Asia-Pacific countries including India at $620 billion. However, it did not give a country-wise break-up for its estimate.

“S&P Global Ratings has updated its estimates of the total and permanent income loss for Asia-Pacific from COVID-19: approximately $620 billion. This loss will be distributed across sovereign, bank, corporate, and household balance sheets," it said in a statement.

Earlier this month, the Asian Development Bank had estimated that in the worst case of a significant COVID-19 outbreak with precautionary behaviour and restrictive policies in place for six months, personal consumption expenditure in India will decline by $29.9 billion with the global impact being $347 billion.

S&P slashed its 2020-21 growth projection for India from 5.7% to 5.2% last week, as it fears that the Asia Pacific region may slide into recession as countries implement strict lock-downs to contain the COVID-19 pandemic.

Moody’s and the Organisation for Economic Cooperation and Development (OECD) had recently cut their growth projections for India to 5.3% and 5.1%, respectively, for 2020.

S&P on Monday said it expects policy rate in India to fall to 4.5% in 2020-21 from 5.15% in 2019-20 as inflation is likely to decline to 4.4% from 4.7% during the same period. RBI has signalled a rate cut in its upcoming policy meet on 4 April, following rate cuts by major central banks across the world.

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