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World will go into recession except India and China due to COVID-19,USD 2.5 trillion rescue package needed: UNCTAD

According to new analysis from United Nations Conference on Trade and Development (UNCTAD) titled ‘The COVID-19 Shock to Developing Countries: Towards a ‘whatever it takes’ programme for the two-thirds of the world’s population being left behind” the year 2020 will face world recession, mainly developing countries due to COVID-19 pandemic with an exception to India and China.World economy, except India, China, will go into recession

  • The exporting countries will face $2 trillion to $3 trillion drop in investment from overseas in the next two years.
  • The downward growth in the emerging economies was already predicted in the last quarter of 2019 but the corona virus outbreak has made it worsen.
  • It should be noted that the analysis did not give an explanation to why and how India and China will be the exceptions in the times of world recession.

USD 2.5 trillion rescue package needed for developing countries:
United Nations (UN) asked USD 2.5 trillion rescue package for developing countries facing economic damage from the corona virus crisis. UNCTAD has prepared Four-point recovery plan to tackle severely impacted COVID-19 situation. The four points are:

  • $1 trillion investment injection for weaker economies.
  • Debt freeze for distressed economies.
  • $500 billion investment in poorer countries’ emergency health services and related social relief programmes.
  • Implementation of State-led capital controls to curtail already surging capital outflows from developing countries.

About UNCTAD:
Establishment– 1964
Headquarters– Geneva, Switzerland
Secretary-General– MukhisaKituyi