United Nations predict India’s GDP at 4.8%

On April 9, 2020, the United Nations released a report on Economic and Social Survey of Asia and Pacific (ESCAP), 2020.

Highlights

According to the report, the economic growth rate of India stood at 5% in 2019-20. It has forecasted that the growth rate is to shrink to 4.8% in 2020-21 and the growth rate might improve in the year 2021-22. The negative impacts of the virus is to affect Asia and Pacific greatly as compared to other parts of the world.

The report also says that the impact of the virus is to be worse than that experienced during SARS (Severe Acute Respiratory Syndrome), 17 years back.

Global Economy

The report predicts that the global economy is to grow at 2.3% in 2020 and will gradually pick up in 2021. The global economic growth was 3% in 2019 and was the slowest since the economic slow-down in 2008.

Asia Pacific

The report says that the growth rate in Asia-Pacific is to weaken to 4.3% from 5% in 2019. It had already slowed down from 5.3% in 2018. The slowdown in the region was led by the major economies namely Russia, China and India.

Effect on Pharmaceuticals

India produces 20% of world drugs. It imports 70% of raw materials t manufacture these drugs from China. Therefore, the pandemic if prolonging will affect these supply chains greatly.

Month: Current Affairs - April, 2020