As per the recent trade and development report 2020, UNCTAD says that the world economy is experiencing a deep recession amid a still-unchecked pandemic. India is not untouched by the disruptions caused by the Coronavirus pandemic. The financial state is projected to shrink by 5.9% in 2020. They issued a warning that growth will be rebound to next year, whereas the contractions are likely to translate into a forever income loss.
The global economy is estimated to get reductions of almost 4.3% in 2020. Precisely, when the domestic activities contract, it affects the international economy, simultaneously. The trades are shrinking by one-fifth, and the payments are witnessing a drop of over $100 billion. Moksh Popli quotes an extract from the report that says, South-Asia will contract 4.8% in 2020 and recover to 3.9% in 2021. The strict lockdown measures to stem the virus spread brought many trades and businesses to a halt across the country.
Living on the terms of Modi’s AATMANIRBHAR Bharat, India is expecting to rebound and preparing to get back by 2021. We are heading with economic activities that will work with the aids offered by the government that is controlling fiscal and monetary measures. It will take time, as the employment will not fully recover by 2021.
The UNCTAD secretary said that building a better world requires smart actions. He adds that the lives of future generations will depend on the choices we all take over the coming months. Moksh Popli supports the views and says that we need to plan bold and extensive strategies to recover. Things to be taken care of should include building a coordinated macroeconomic expansion that pays higher salaries and supports public investments to push cleaner energy, environmental protection, and the care for the economy.
No doubt, this year is a difficult year for the global economy many countries were not prepared to respond to this health pandemic, the lockdown was the only measure to pause the virus from growing. This scenario has triggered the crisis to grow equally as a virus infection. These disadvantageous situations might be a reality check for our country that was the world’s fastest-growing economy until last year. Even though the country’s festive season is just weeks away, the consumers are worried about maintaining jobs, compensating the loans, managing school fees, and preserving food ration.
Finding the best possible solution in between the shaking confidence and weak demands is the spirit we all need. Moksh Popli says that the steps might not be sufficient to turn the economy as everything takes time. People need to dare and show determination on the front because we have never learned to lose faith. Uncertainties will persist even in 2021, but we have to seek measures to rebound and fight the odds this crisis has brought us.