IMF- "World is now in Recession" on 27/03/2020
"The COVID-19 pandemic has driven the global economy into a downturn that will require massive funding to help developing nations . It is clear that we have entered a recession" -IMF Chief(Kristalina Geogieva)
According to the new analysis from United Nation Conference on Trade and Development (UNCTAD), the UN trade and development body titled 'The COVID-19' Shock to Developing Countries : Towards a 'whatever it takes ' programme for the two-thirds of the world's population being left behind'
for example
The lingering pandemic COVID-19 is expected to have far reaching negative impact for Pakistan's economy as the number of people living below the poverty line might be get doubled going to 125 million from existing figure of 50 to 60 million.
This staring disclosure was shared with international donors during high-level meeting conveted by Deputy Chairman Planning Commission-" Mohammad Jehanzeb Khan"
in Simple Words - The world is at Standstill.Major economies have imposed lock-downs.
How COVID 19 will Impact Economics:-
- For many business 2020 will be horrible year in term of earning.
- Almost all business around the world have taken up loans from majors.
- After Covid-19 you could see major surge in the number of NPAs around the world.
- People who are indoors because of the lock-down cannot earn.
- Many people around the world will fail to pay house mortgage.
- Import-Export will reduce tremendously.
This Could Create a 2008 like Housing Crisis.
(*)How India & China could Survive
China:-
china as whole was not get in lock-down situation.So their main provinces where not too much affected .
China's foreign exchange reserves:- US$ 3.107 trillion.
China can easily bail out banks and major corporations in case of an economic fallout.
India:-
We are assuming that India will survive economic recession if Covid-19 doesn't become a major issue in India.
India doesn't depend on exports all that much for its GDP
So if global consumption slows down it will not have a significant impact on Indian Economy
Exports Contribution to Indian GDP: The share of exports to India's economy came down from close to 15% in 2014-2015, the year the Narendra Modi government took charge at the Centre ,to 11% in 2018-19,when its term ends , a time series data showed , days after the Centre's foreign trade number reveled overseas shipments had hit a record high in FY-19.
Currently there is 21 days total lock-down in India. Iff this lock-down might incresed then it will affected country's economy very badly.
Hope you find this blog informative . Thank you.