There’s bad news. The global economy has plunged into the worst recession since World War II. The Indian economy has contracted by 23.9 per cent last quarter, the most drastic fall in decades. The construction, manufacturing and transport industries are among the hardest hit. As the New York Times writes:
The data released on Monday showed that consumer spending, private investment and exports had all suffered tremendously. The sectors including trade, hotel and transport dipped 47 per cent. India’s once-mighty manufacturing industry shrank 39 per cent.
It’s the worst decline among the world’s top economies, fuelled by the lockdown restrictions meant to contain the spread of the Coronavirus. In comparison, the UK economy contracted by 20.4 per cent, the French economy shrank by 13.8 per cent, the Italian economy shrank by 12.4 per cent, the Canadian economy shrank by 12 per cent, the German economy shrank by 10 per cent, the US economy shrank by 9.5 per cent, and the Japanese economy shrank by 7.6 per cent.
These numbers are worrying. The impact of this economic contraction is going to hurt. The number of people who are going to suffer from extreme poverty, hunger and malnutrition is on the rise. The poor are getting poorer, and the rich are getting richer.
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