Page 18 - Policy_Economic_Report_September2020

Policy and Economic Report:
Oil & Gas Market

Other issues

Again, here, the broad scale recovery is eclipsing the major challenges faced by the sectors such as
services, which employs a growing portion of Chinese over the last few years as the government tries to
boost the economy’s reliance on consumption for growth. Borrowing among the services companies
declined. These companies were earlier only twice as likely to be rejected for loans as businesses in
property.

The report underlines that the primary COVID impact now seems to be on Services, which saw only
marginal improvement over Q2 in revenue, profits, and sales prices, along with no uptick in hiring. Logan
Wright, Lauren Gloudeman, and Daniel H. Rosen from consulting and research firm Rhodium Group
highlighted that China faces more risks on its current path than is commonly understood and that the
country has encountered incidents of stress within its financial system that could have spread to broader
crises.

The report further points out that cycles in the property sector strike at the heart of some of Beijing’s
vulnerabilities in containing financial stress. There is no strong record of policymakers in any country being
able to deflate a sizable property bubble without negative consequences

7. Snapshot of Indian Economy: Noticeable improvement in employment levels

The number of COVID-19 cases in India continued to increase during the month and reached 57.3 lakhs as
on 24 September. The pandemic has already claimed over 91,149 lives in the country.

GDP

In the quarter ending June 2020, India’s GDP dropped by 23.9 per cent, recording the maximum
contraction among all major global economies. This has taken the economy back to its 2014 levels of less
than INR 27 trillion

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September 2020