According to a recent UN report, the world economy is predicted to go into recession this year with an estimated loss of trillions of dollars of global income due to the health situation globally. However, according to the report, China and India are likely to escape from this global recession.
The developing countries are more likely to be affected. With two-thirds of the world’s population living in these countries facing unprecedented economic damage from the COVID-19 crisis, the UN is calling for a USD 2.5 trillion rescue package for these nations.
Advanced economies and China have put together massive government packages which, according to the G-20, will extend a $5 trillion lifeline to their economies. “This represents an unprecedented response to an unprecedented crisis, which will attenuate the extent of the shock physically, economically and psychologically,” UNCTAD said.
UNCTAD Secretary-General Mukhisa Kituyi, said, “The economic fallout from the shock is ongoing and increasingly difficult to predict, however for developing economies this could be worse.”
However, the report did not give a detailed explanation as to why and how India and China will be the exceptions as the world faces a recession and loss in global income.