Economic Toll From Second Covid-19 Wave Not As Bad As Feared

Data due later Tuesday will likely show gross domestic product grew 21% in the three months through June from a year ago.

The economic toll from a deadly second wave of Covid-19 that swept through India last quarter doesn't appear to be as bad as feared, with analysts still seeing the nation pulling off the world's fastest growth this year. A better-than-expected manufacturing performance and a milder hit to services, combined with a robust pace of vaccinations, have helped keep the annual growth outlook for the economy steady at 9.2%, according to a Bloomberg survey. That pace is the same seen in a poll last month and the quickest among major economies. "The economic damage appears to be less than previously expected," said Rahul Bajoria, chief India economist at Barclays Bank Plc. "With the second outbreak brought under control, a rapid recovery appears underway," he said. Data due later Tuesday will likely show gross domestic product grew 21% in the three months through June from a year ago, according to the median of 45 estimates compiled by Bloomberg, mainly as a bounce back from last year's crash.