Indian economy projected to decline in 2020, will grow in 2021: United Nations
According to a United Nations report, the Indian economy is projected to decline by 9.6 percent in 2020, affected by Covid-19 and lockdown. The same report said that the Indian economy could register a growth of 7.3 percent in 2021. Reportedly, lockdown and other restrictions did not stop the spread of virus infection, but household consumption declined.
4.3% contraction in global economy
The latest edition of the World Economic Situation and Prospects report of this multilateral organization on the world economic situation and prospects said that the global economy shrank by 4.3 percent in 2020. This contraction is more than two and a half times of 2009. The global economy may grow by 4.7 percent in 2021 and will somehow compensate for the 2020 loss.
The biggest decline in history in Indian economy
According to the report, the epidemic has had a profound impact on all economies in South Asia and the region is projected to witness an economic decline of 8.9 percent. According to the report, the region’s largest economy, India has suffered the biggest decline in its history and the country’s economy has shrunk by about 10 percent in 2020.
The spread of the epidemic did not stop
The report said, ‘India’s economic growth rate fell to 4.7 percent in 2019 and declined to 9.6 percent in 2020, as domestic consumption declined due to lockdown and other controls, despite fiscal and monetary incentives. But the spread of the epidemic has not stopped. UN Secretary-General Antonio Guterres said that the world is currently facing the biggest health and economic crisis of 90 years. We are saddened by the increasing number of deaths.
Labor market of developed countries destroyed
We must keep in mind that the decisions we make today will determine our collective future. The report said that the growth of the Indian economy in 2022 will slow to 5.9 percent as compared to 7.3 percent in 2021. The report states that Covid-19 has devastated the labor market of developed countries. In mid-2020, the unemployment rate reached 27 percent in Nigeria and 23 percent in India. China’s growth rate is projected to be 2.3 percent in 2020 and 7.2 percent in 2021.
