The future generation is not going to judge India just on the basis of one election. There are greater things by which the country is judged. The future generation is going to want a strong economy..…..Sanjay Gandhi
The world is suffering from Covid-19 pandemic has that has hitted the world at a scale and speed that is not more than a Doomsday! The human cost of the coronavirus is going to be unimaginably high. Worse, as if it is not going to stop anywhere
Taking toll Across the world: confirmed cases:859032 Cured:178032,Deaths:42107{till dated 1.04.2020.} As all of us Believe on “Survival of fittest “this hold good for our nations too!For any country to be counted among developed elites it needs to maintain its economy status ,As economy act backbone for any nation to so that it count itself among developing nations!and to make a world better place to live in!As the global pandemic deepens and the human cost of Covid-19 rises, the novel coronavirus outbreak is sending shocks through the world economy.Due to the unending Lockdown the world economy is going into recession this year with a predicted loss of global income in trillions of dollars.This will spell serious trouble for developing countries, The effect of the virus is likely to be seen long after medical science offers a cure or at least a vaccine for Covid-19 (the disease caused by the new coronavirus). That’s because the economic cost of shutting down large swathes of the world is going to be steep.
World Bank Report Assesement
According to the Bank, growth of the developing EAP region is expected to slow to 1.3 per cent in the baseline and to -2.8 in the lower-case scenario in 2020, from an estimated 4.7 per cent in 2019. The pandemic will also have a serious impact on poverty and welfare, the World Bank warned. The report estimates that under the baseline growth scenario, nearly 24 million fewer people will escape poverty across the region in 2020 than would have in the absence of the pandemic (using a poverty line of US$5.50/day). If the economic situation were to deteriorate further, and the lower-case scenario prevails, then poverty is estimated to increase by about 11 million people.
The Damage cost in terms of Dollars:
Two-thirds of the world living in developing countries are faced with unprecedented economic damage,UN Conference on Trade and Development (Unctad) estimates the economic impact of Covid-19 at a minimum of $1 trillion in 2020.
Coordinating with Partners to manage Global crisis:
Accordingly, annual global GDP growth is projected to drop to 2.4% in 2020 as a whole, from an already weak 2.9% in 2019, with growth possibly even being negative in the first quarter of 2020.Prospects for China have been revised markedly, with growth slipping below 5% this year, before recovering to over 6% in 2021, as output returns gradually to the levels projected before the outbreak.The adverse impact on confidence, financial markets, the travel sector and disruption to supplychains contributes to the downward revisions in all G20 economies in 2020, particularly ones strongly interconnected to China, such as Japan, Korea and Australia.The world economy was moving with its own pace till Covid-19 appered in Wuhan china.The situation become so dreadful that it harbors the risk for the “world order“.
What Future Carries For Us!
What happens next will largely depend on how the Covid-19 crisis evolves. In the best-case scenario, the virus will be contained in the near future or start slowing down in the early spring. The lagging demand will likely bounce back relatively quickly, particularly with the help of tailored government measures.If the virus continues to spread across China, East Asia and other world regions, however, uncertainty and disruption will increase. As the human costs in China and other countries continue to rise, the virus is also taking its toll on different industrial sectors – and subdued demand and disrupted supply across industries increase uncertainty over the global economy.China represented slightly over 4% of the global GDP and was the sixth largest economy in the world. Today, it contributes more than 16% of the world’s GDP and is the second economy after that of the United States.Additionally, the country has traditionally been the biggest source of global growth ranging from Technology to daily commodities.If the virus continues to spread with the same pace across China, East Asia and other parts of the world Movement restrictions would continue to increase and supply chains that are currently temporarily disrupted would decompose entirely, and factory shutdown would continue not just in China but also in other markets& collapsing world Economy.
Suggestion as per World bank
6 ways East Asia Pacific can weather the #COVID19 shock:
Act on containment & the economy
Invest in health care
Target fiscal support to cope with the crisis
Ease credit for firms & households
Keep trade open
Boost int’l cooperation.
Economic package Of India!.
India’s immediate measures are crucial, and the new economic taskforce is a step in that direction. Britain unveiled a £330 billion (about $382 billion) stimulus package, and the US has committed $1 trillion, in addition to $50 billion in financial aid to states, cities and territories. Countries are giving priority to providing relief and support over fiscal discipline. India, too, needs to follow suit. Interest rates have also been aggressively cut by several countries, with Britain and Canada lowering rates by 0.5%.Cutting Rate of interest: India, too, needs to follow suit. Interest rates have also been aggressively cut by several countries, with Britain and Canada lowering rates by 0.5%. Considering the higher interest rates in India, RBI should consider an interest-rate cut of 50 basis points (bps)
2.Nirmala Sitharaman to unveil GoI’s Covid-19 mitigation economic package, the stimulus could be oriented towards the poor, unemployed and vulnerable sections such as contractual daily wage labourers, construction workers, street vendors, etc, as well as MSMEs. An income support of about Rs 7,500 a month could be credited to the bank accounts of low-income and informal workers for three months.
3.GoI should immediately release outstanding payments, pending tax refunds and export incentives, and announce a moratorium in loan repayments for small industrial units, transport operators, tourism, hotel and restaurants, and residential mortgages for low-cost housing.
G20 leaders are to stick to their commitment of ‘a global response in the spirit of solidarity’, there must be commensurate action for the six billion people living outside the core G20 economies,”(world bank)
To deal with this crisis, countries need to act fast and decisively to contain the spread of infection, while expanding capacity both to treat people and to test and trace infections. Fiscal measures should provide social protection to cushion against shocks, especially for the most economically vulnerable. Firms will need liquidity injections to help them stay in business and maintain beneficial links to Global Value Chains.To kickstart fund-raising from the capital market, incentives and deductions should be considered for companies to raise capital.It’s time to start providing immediate support measures to arrest the contagion impact…
“Make things Better not Bitter,stay inside stay safe break the Chain”...Shariqa Maryamk
