Group Research – Econs, Radhika Ra o1 Jun 2021

Growth data for 1Q21 (i.e. 4QFY21), out last night, confirmed that the economy had continued to normalise from the first wave of the pandemic.

  • 1Q21 real GDP outturn points to the fading impact of the first Covid wave and return to normalcy
  • Resurgence in cases in April-May will see the economy run into an air pocket in 2Q
  • Differing nature of the response suggests economic impact will be less adverse than 2020
  • We eye the underpinnings of a K-shaped recovery