The recent effusion of the COVID-19 pandemic has not been helping with the economy. According to the UN that is the United Nations, the world economy will go into recession this year with an estimated loss of trillions of dollars.
With a quarter of the population living in the developing countries we’ll face unrivaled economic damage due to the pervasive disease. However, according to the UN China and supposedly India are exceptions; and will face the least damage. The reasons for the same were unrevealed by both the UN and UNCTAD. The disintegrating global situations will also affect fiscal and foreign exchanges: falling drastically.
The UNCTAD has proposed four strategies for the emerging financial tsunami. Which might be effective further ahead.
More to know about COVID-19
Here is what Foreign Affairs had to say about the world economy.
The world economy will go into recession this year. The downturn will be sudden and sharp. And although a constructive response from policymakers, companies, and households could limit its duration, its effects will be felt for decades to come.
Most economic forecasts for 2020 predicted a year of steady if not rising growth. The International Monetary Fund’s January forecast update saw growth picking up from 2.9 percent in 2019 to 3.3 percent in 2020. And there were plenty of reasons to be optimistic:
the “Phase One” trade agreement between China and the United States, the reduction of Brexit-related uncertainties, and strong consumer spending.
Especially in the United States and Germany, which seemed likely to spur companies to proceed with delayed investment plans.
Here is what the United Nations had to say about the current situation about the world economy.
The world economy could shrink by up to 1 percent in 2020 due to the coronavirus pandemic. The United Nations said, warning that the growth might contract even further. If restrictions on the economic activities extend without adequate fiscal responses.
What is the Likely Recovery Path from the recession
Whether economies can avoid the recession or not. The path back to growth under COVID-19 will depend on a range of drivers. Such as the degree to which demand will foregone. Whether the shock is truly a spike or lasts, or whether there is structural damage, among other factors.