ECONOMIC IMPACT WUHAN VIRUS
The COVID-19 pandemic is far more than a health crisis , it has hugely impacted the economies on a global scale . It is predicted that it will likely increase poverty and inequalities .
Global suffering might escalate , jeopardizing lives and livelihoods for years to come . It is believed that economic impact of COVID-19 pandemic would vary in sectors . Particularly for India , the impact is supposed to be trivial. According to the Global Economic Prospects report released by the World Bank , India’s gross domestic product(GDP) is expected to contract by 3.2% in 2020-21. There will be a moderate recovery to 3.1% growth in 2021-22. This means that 2021-22 GDP will be less than what it was in 2019-20 .
For example, it can be expected that at least two sectors; agriculture and government, will not see a contraction. Now what about employment? For example, construction is a more labour-intensive sector than finance.
So, for an equal value of loss in output, job losses in construction would be far higher than in the financial sector. Bailing out the construction sector can save a lot of jobs, and mostly of the poor.
Supporting finance will probably cushion the not-so-poor, and the sectors which depend on their demand.
Immediate development responses in this crisis must be undertaken with an eye to the future. Development trajectories in the long-term will be affected by the choices countries make now and the support they receive.
Over the next 12 to 18 months, the socio-economic response will be one of one of three critical components of the UN’s COVID-19 response, alongside the health response, led by WHO, and the Global Humanitarian Response Plan.
The major concern and goal of the countries world wide would be now to cope up with this crisis , because it is now said that we are already in recession.
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