World Economy to go into recession, India and China likely to be exempted: UN report

UN has released its latest trade report mentioning that the World economy will go into recession this year. Due to Coronavirus Pandemic, there will be trillions of dollars loss of global income.

The situation will create serious trouble for the developing countries but with the exception of India and China, it states the UNCTAD report. The United Nations has called for USD 2.5 trillion packages for the rescue of the developing nations where around one-third of the world’s population lives.

The speed with which the economic shockwaves due to COVID-19 Pandemic has hit the developing countries is serious even in comparison to the Global Finance Crises of 2008.

Impact of the Global Economic Recession on India and China

The report by UNCTAD states that even the world economy will go into crisis this year with the loss of trillions of dollars in global income marking a huge impact on developing countries, Indian and China are less likely to be affected. Though, the report does not provide any explanation as to why there will be an exception with these two countries. 

UNCTAD Analysis of Developing Countries

As per the analysis titled ‘The COVID-19 Shock to Developing Nations: Towards a ‘whatever it takes’ programme for the two-thirds of world’s population being left behind’ done by United Nations Conference on Trade and Development (UNCTAD), the UN trade and development body, the countries with rich commodity export will face a USD 2 Trillion to USD 3 Trillion drops in overseas investments in the next two years.

UNCTAD explains World Economy Crisis:

UNCTAD suggests the following measures to combat the ongoing crisis:

 

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