The world is facing an economic slowdown and the effects are visible in every country. This recession has resulted in foreign investors pulling out an estimated $26 billion from developing Asian economies. For India, the figure stands at over $16 billion. These figures have been reported by an independent Congressional Research Center (CRC).
The report on global economic effects of COVID-19 said that in Europe, over 30 million people in Germany, France, the UK, Spain, and Italy have applied for state support. The first quarter 2020 data indicates that the eurozone economy contracted by 3.8 per cent, the largest quarterly decline since the series started in 1995.
In the US, preliminary data indicated that the GDP fell by 4.8 per cent in the first quarter of 2020, the largest quarterly decline since the fourth quarter of 2008 during the global financial crisis.
According to the report, the pandemic crisis is challenging governments to implement monetary and fiscal policies that support credit markets and sustain economic activity, while they are implementing policies to develop vaccines and safeguard their citizens.
While almost all major economies are shrinking as a result of coronavirus, only three countries China, India, and Indonesia are projected to experience small, but positive rates of economic growth in 2020, it said.
