HYDERABAD: Due to COVID-19 pandemic, the global economy is pushed into recession. The coronavirus has severely impacted the economy of developed countries as well as poor countries.
Despite international trade agreements, foreign investors are taking back their investments from many countries. Foreign investors have pulled out around USD 16 billion (approximately Rs.12.12 lakh crores) investments from India, and over USD 26 billion from Asian countries, according to the latest report by the US-based Congressional Research Centre.
The company has released a report titled Global Economic Effects of COVID-19. The eurozone economy has shrunk by 3.8 per cent. Even though the eurozone economy has been declining since 1995, this is the largest quarterly decline, as per the Congressional report.
Also, the US GDP rate drops down by 4.8 per cent in the first quarter due to COVID-19. This is the first time since the global recession of 2008 that the American GDP rate has fallen down. Nearly three billion Americans have claimed unemployment insurance since mid-March to the end of April, according to the report.
The International Monetary Fund (IMF) first estimated the GDP growth rate for India in 2020–21 to 5.8 per cent and then revised it to 1.9 per cent, in view of COVID-19 crisis. Otherwise, the IMF forecasts that China and India will continue to step towards growth.
The report further stated that the COVID-19 crisis has a much greater impact and all major economies are shrinking but only three countries -- India, China and Indonesia -- have experienced a small impact.