Business News: United Nations Economic and Social Commission for Asia and Pacific (UNESCAP) released a report in Tuesday mentioning that India’s economic growth will remain below the mark of development it recorded in 2019. Due to the global pandemic induced lockdown around the world, many nations recorded only a negative growth in the year 2020-21.
According to the Economic and Social Survey of Asia and the Pacific 2021: Towards post COVID-19 resilient economies India will record economic growth of 7%, but this will be overridden by the negative economic growth last year, by 7.7%. By the beginning of March, economists predicted that India will exit the negative economic growth phase.
India entered the lockdown phase with a bad economic state and the halt in all economic activities during the lockdown further pushed the economy into a negative growth state. Though India has exited the lockdown, resumed most industrial activities and an active vaccination program going on besides, the economic growth will still remain in that level.
The report also mentioned the economic growth of China, saying that it is one of the few economies in the world to have swiftly contain the virus with minimum lockdown and halt in economic activities. In fact, China recorded an economic growth much better than pre-pandemic levels with 6.5% growth registered in the fourth quarter alone.
The report predicts that developing Asia-Pacific economies will grow by at least 5.9% in 2021 and 5% in 2022 with a negative economic growth in 2020, recorded at only 1%. The report states that the world economy is bound to make a ‘K’-shaped recovery, meaning a recovery from a recession that happens at different rates throughout the world and potentially changes the nature of whole economy itself.
This type of recovery means that the poor may get poorer and the vulnerable groups might be marginalised in the situation. Governments around the world must proceed with vaccination programs sincerely and engage with one another co-operatively. Monetary supports should continue as during the pandemic and inflations should be controlled.