“The longer the disruptions last, the greater the risk of global recession becomes,” it said.

Moody’s forecast a 5.8 per cent growth rate for India in 2021.

“A number of governments and central banks have announced countervailing measures, including fiscal stimulus packages, policy rate cuts and regulatory forbearance; however, the effectiveness of policy easing will be blunted by measures to contain the outbreak, and policy space is constrained for some sovereigns,” it said.

Also, tighter funding conditions and exchange rate depreciation could stress sovereigns with high foreign currency exposure, heavy reliance on external market funding or low foreign currency reserve coverage, it said.

Moody’s said oil price shock adds to growth and fiscal pressures for exposed sovereigns. “A period of lower oil prices will further weigh on the economic and fiscal fundamentals of oil exporters, while mitigating the trade shock for importers.”