United Nations releases World Economic Situation and Prospects Report, 2020

The United Nations recently released the World Economic Situation and Prospects Report, 2020. According to the report, the world economy is to shrink by 3.2% in 2020. The GDP growth in developed countries will decline to -0.5% in 2020.

Highlights: India

The report says that the growth rate of India in 2018 was 6.8% and in 2019 it was 4.1%. It will reduce to 1.2% in 2020. The report predicts that the growth of India will raise eventually in 2021 hitting 5.5%

Highlights: World

The Global economy is to gradually recover by 2021. The world economy will lose around 8.5 trillion USD due to COVID-19. Also, the global economy is to shrink by 4.9% in 2020. Around 34.3 million people are to enter below poverty line by 2020.

Also, the report say that several governments are rolling out uneven fiscal stimulus measures that are roughly equal to 10% of their GDP to minimize the crisis created by COVID-19 outbreak.

Solutions suggested

The report has suggested following solutions to combat COVID-19

  • The COVID-19 is disturbing fundamental premise of globalization. Therefore, stronger international cooperation is required to contain the virus
  • More liquidity should be pumped into the economies
  • The International Tourism should be given focus. Around 80% of the tourism has become idle rendering millions jobless.

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