CORONA EFFECTS ON WORLD ECONOMY
There is a possibility of a slowdown in world business due to
the arrival of many countries around the world from China. Because of Corona,
two of the world's largest economies country, China and US are expected to decline
in business, which is going to affect the whole world. The Indian government is
also worried of the impact of Corona on the economy. Finance Minister Nirmala
Sitharaman says that options are being taken into at various levels in this
matter.
Secretaries of different ministries are constantly reviewing the
impact of the corona and keeping a closer watch. Analysts say that India doing
more than 150 billion dollars (about 10 lakh crore rupees) business with
America and China will also not remain untouched by this. However, economists
are denying any effect of Corona on the growth rate of the Indian economy.
According to a report by research and rating agency Moody's Analytics, the
growth rate of the world economy is expected to fall by 0.4 percent this year
due to Corona. For the first year 2020, the world growth rate was projected to
increase by 2.8 percent, which has now been reduced to 2.4 percent.
Economist Govind Rao says that Corona will have dual that is
positive and negative effects on the Indian economy. If supply chain is
affected, there may be shortage of raw materials for many things, and then many
things will become cheaper. But it is too early to decide on how Indian growth
is affected by Corona. Ajay Sahai, CEO and DG, Federation of Indian Export
Organizations (FIEO), says the import bill could also increase in the face of
shortage of raw materials and increasing production overall costs. The World Bank is
also anticipating a fall of one percent in world growth due to Corona. An alert
has also been issued in the USA regarding Corona. Many countries like Iraq,
Iran, Italy, Iraq, Iran, South Korea,
are affected by Corona. According to a Moody's Analytics report, due to Corona
in the world's largest US economy, the growth rate of the US economy is suppose
to be decline by 0.2 to 1.7 percent in the year 2020.
In the first half of this year, there is a possibility of
slowdown in the business of the world including America.
The Moody's Analyze report states that China's tourism and other
business is in complete disarray. Foreign airlines are not going to China and other
places cruise travel is also canceled. Due to the impact of China, tourism is also
affecting the world.
Due to the many cases of Corona in Italy, tourists are now
avoiding to go to Europe, due to which tourism of Europe is going to be
affected and economy declined.
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