The economy of many countries to be affected by the Coronacrisis, but China to benefit!
Coronavirus gives a big blow to the economy of many countries, including India and America; Recession expected
MARCH 26 (WTN) - 21,304 deaths! Yes, till the time of writing this article, 21,304 people have died due to Coronavirus all over the world. Coronavirus infection has taken the form of an epidemic in more than 190 countries. As far as India is concerned, 13 people have died in India due to Coronavirus infection so far, while 678 people are infected with it. As the Coronavirus infection spreads through human contact, Prime Minister Narendra Modi has implemented a full 21-day lock-down as a precautionary measure across the country.
According to a report, there is a possibility of loss of about 9 lakh crore rupees to India's economy due to the 21-day lock-down. In fact, due to the lock down, economic activities will be stopped in the entire country for 21 days. In such a situation, it is natural for the economy to be adversely affected. The 21-day lock-down could cause India's economy to lose between 4 and 5 percent of GDP. At the same time, there is also a possibility of rising inflation due to lock down, increasing unemployment, and impacting production.
Meanwhile, global rating agency Moody's has predicted a slowdown in the G20 group countries this year due to the Coronavirus crisis. According to Moody's Research, in the year 2020, the gross domestic product of the G20 group of countries will decrease by 0.5 percent. Not so, a two percent drop in the US economy and 2.2 percent decline in the eurozone economy will be seen due to Coronavirus infection. But you will be surprised to know that even after China after being the major center of virus infection, China's economy is expected to expand by 3.3 percent!
For your information, let us know that the economy of all the countries of the G-20 group is 85 percent of the GDP of the whole world. Apart from this, the share of G-20 group countries in global trade is also around 80 percent. Two-thirds of the world's population lives in G-20 group countries. In such a situation, when such a large population of the world will be affected by Coronavirus infection, it is natural that the economic output in these countries will be negatively affected.
Actually, there is a situation of lock down not only in India but in many countries all over the world also. Many countries have banned the arrival of foreigners. So at the same time, many countries have postponed import-export. Many countries of the world, including India, are still engaged in saving the lives of people. It is natural in this adverse situation that the economic production and service sectors have become badly affected. The tourism sector has come to a standstill. In such a situation, the economy of the G-20 countries, including India, is going to be heavy for 2 to 3 months, and for this reason, due to the stagnation of economic activity in many countries of the world, the GDP of those countries will be recorded to decline.