With a predicted loss of trillions of dollars worldwide, the global economy will face a massive recession. The United Nations Conference on Trade and Development (UNCTAD) states from an analysis that two-third of the world’s population is left out of the “whatever it takes” program. The commodity-rich exporting economy will witness a drop in the investments from overseas in the upcoming two-three years by 2-3 trillion dollars.
The UN Trade Report, however, says that the developing countries will be facing the strike in their economy however China will be spared from these massive recessions and mostly like there is a possibility of exception for India as well. Though there has been no proper explanation or facts which were put down in the reports.
As China had introduced several government packages to boost the dying economies, she will most likely have over 5 trillion USD lifelines in her economy as per the G20 leaders – states the UNCTAD. The Chinese economy will create a demand of USD 1-3 trillion into the major G20 economies and 2% of the point turnaround from the global output. The forecasts have been done taking into considerations that many of their packages haven’t been released till now.
However, according to the United Nations Conference on Trade and Development, there will be heavy constraints in foreign and fiscal policy across the global economy over the year. The UNCTAD has proposed some strategies for international solidarity and economic unity by taking concrete actions to survive and revive their economies.
This includes a USD 1 trillion liquidity injection for those being left behind through reallocating existing special drawing rights at the International Monetary Fund; a debt jubilee for distressed economies under which another one trillion dollars of debts owed by developing countries should be canceled this year and a 500 billion dollars Marshall Plan for a health recovery funded from some of the missing official development assistance (ODA) long-promised but not delivered by development partners. The speed at which the economic shockwaves from the pandemic has hit developing countries is dramatic, even in comparison to the 2008 global financial crisis stated UNCTAD.
For many countries that aim and have “Sustainable Developmental Goals “will face fatal damage due to the increasing number of deaths and the lack of proper administration and monetary, fiscal policies. Mukhisa Kituyi, Secretary-General United Nations Conference on Trade and Development says,“The economic fallout from the shock is ongoing and increasingly difficult to predict, but there are clear indications that things will get much worse for developing economies before they get better”.
It has been reported to have 860,696 cases across the world.639, 807 active cases and 220,889 active cases out of which 81 % of patients have been discharged and 19% deaths had been notified. India currently has 1516 active cases, 150 recovered and 55 deaths.
Borrowings- Financial Express, Economic Times, World Meter & https://www.covid19india.org/.