Corona Shock: Excluding India and China Full Impact On Indian economy

In the event of health and financial turmoil .. the results will be worse

The United Nations has warned that the global economy is set to plunge into recession this year as the global economy is forecast to lose trillions of dollars due to the coronavirus pandemic. The threat posed by the two-thirds of the world’s population is due to the unprecedented economic loss in developing countries. The United Nations Trade Development (UNCTAD) Conference estimates that a $ 2.5 trillion aid package is needed to help developing countries cope with the crisis.

The company has released a report titled ‘Covid-19 Shock for Developing Countries’. The country’s economies, which are largely dependent on exports of consumer goods, will need $ 2 to 3 trillion in foreign investment over the next two years to get back into the groove. The health crisis is expected to worsen in many developing countries. It predicts that in the event of a health crisis, these countries will get into more economic hardship. It is commented that the combination of the financial health crisis is very bad. So the health care system in those countries is looking for ways to strengthen services.

The world into economic depression – UN

Compared to the 2008 global financial crisis, pandemic  coronaUNCTAD says the economic shock will hit developing countries heavily. The global economy is expected to lose global revenues in trillions of dollars this year. It is said to be causing serious trouble for developing countries except China and India. UNCTAD Secretary-General Mukhiza Kitui said the ongoing economic downturn is difficult to predict, but there are clear indications that conditions are likely to worsen before emerging economies improve. The $ 2-3 trillion rescue package is to be allocated to developing countries over the next two years in the wake of this year’s economic tsunami. China, along with developed countries, has poured huge funds into their economies to avoid recession, Recall that the G20 alliance also recently decided to pump 5 trillion Daughters into their economies. It sounds like an unusual response to an extraordinary crisis. “This year, the global economy is slipping into recession, losing millions of dollars. This is a very troubling topic for developing countries. However, the impact of the recession may not be on India and China.

Four Point Recovery Plan

This is a four point recovery plan. Financial allocations beyond the 2009 allocations should now be made in response to the global financial crisis. Weak financial institutions need to invest more than a trillion dollars. As a second step, Germany must abolish loans to economies of pressure for countries under pressure, such as the abolition of half of Germany’s debt after World War II. Or should be significantly reduced. The third step is to provide $ 500 billion for emergency health services and related social assistance programs in poor countries. Finally, it calls for the countries to implement controls to reduce the already increasing capital inflow from these developing countries.

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