18 Apr 2020

World's Biggest Recession After 1930 And It's Impact To Indian And World Economy

Various countries of the globe have been fighting against the spread of covid-19 both economically as well as medically.  

The Global cases have surpassed 2.2 million cases.  This includes 1,40,000 fatalities.  And more than 5,40,000 people have said to have been recovered from the disease.

Every nation are taking measures against covid-19 like social distancing, lockdown ,wearing mask etc. IMF has made it clear that Asia economy will grind to halt for first time in last 60 years as covid-19 crisis takes unprecedented toll of service sector and export destination.

Asia's economy can have zero growth this year which is first time in last 60 years, this has addressed in IMF report on Asia Pacific region which was released on Thursday. Asia can do you better than other regions suffering economic contraction the projection is worse than 4.7 % average growth rate throughout the global financial crisis and 1.3% increase during Asian financial crisis in late 1990s.

Due to this pandemic world leading economy like China and US may also suffer. IMF has forecasted China's economic growth for January came down from 6 % to 1.2% this year. Also, in US more than 22 million workers have applied for unemployment benefits admit just a month of Corona virus related shutdowns.

The UK's office for budgetary responsibility has won the economy shrink by 35% with 2 million job losses.

Lockdown in India announced by PM Modi has expected loss of output is $16.6 billion per week, but due to lockdown extension, estimated to be $26 billion per week. 

The Indian aviation sector is likely to take 6 to 24 months to recover from coronavirus blow. Major companies in India are temporarily suspended or significantly reduced operations.

GDP growth as predicted by IMF for India in 2020 is 1.9%  as global economy is hitting the worst recession after 1930. 

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