INDIAN ECONOMY - GROWTH PROSPECTS POST COVID-19 - ISSUES AND CONCERNS

INDIAN ECONOMY - GROWTH PROSPECTS POST COVID-19 - ISSUES AND CONCERNS

Friday, May 01 2020

The global economy has been completely devastated in terms of all parameters, viz., income, output and employment by the COVID 19 pandemic. On the basis of a baseline scenario, in which the pandemic fades in the second half of 2020 and containment efforts are gradually unwound, the International Monetary Fund (IMF) in its biannual World Economic Outlook (WEO) projected the global economy to contract sharply by 3 per cent in 2020, much worse than during the 2008-09 financial crisis. The IMF projected 5.8 per cent recovery for global economy in 2021. But the recovery could be weaker than expected after the spread of the virus has slowed for various reasons. The IMF candidly admitted “these include lingering uncertainty about contagion, confidence failing to improve, and establishment closures and structural shifts in firm and household behaviour, leading to more lasting supply chain disruptions and weakness in aggregate demand”.

The global economy has been completely devastated in terms of all parameters, viz., income, output and employment by the COVID 19 pandemic. On the basis of a baseline scenario, in which the pandemic fades in the second half of 2020 and containment efforts are gradually unwound, the International Monetary Fund (IMF) in its biannual World Economic Outlook (WEO) projected the global economy to contract sharply by 3 per cent in 2020, much worse than during the 2008-09 financial crisis. The IMF projected 5.8 per cent recovery for global economy in 2021. But the recovery could be weaker than expected after the spread of the virus has slowed for various reasons. The IMF candidly admitted “these include lingering uncertainty about contagion, confidence failing to improve, and establishment closures and structural shifts in firm and household behaviour, leading to more lasting supply chain disruptions and weakness in aggregate demand”.

The global economy has been completely devastated in terms of all parameters, viz., income, output and employment by the COVID 19 pandemic. On the basis of a baseline scenario, in which the pandemic fades in the second half of 2020 and containment efforts are gradually unwound, the International Monetary Fund (IMF) in its biannual World Economic Outlook (WEO) projected the global economy to contract sharply by 3 per cent in 2020, much worse than during the 2008-09 financial crisis. The IMF projected 5.8 per cent recovery for global economy in 2021. But the recovery could be weaker than expected after the spread of the virus has slowed for various reasons. The IMF candidly admitted “these include lingering uncertainty about contagion, confidence failing to improve, and establishment closures and structural shifts in firm and household behaviour, leading to more lasting supply chain disruptions and weakness in aggregate demand”.

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