The global economy is staring at a recession. According to some estimates, India's growth rate could drop to less than two percent. WION's Palki Sharma tells you what India is doing to contain the economic fallout of the virus.

Gravitas: India moves to revive economy | Wuhan Coronavirus

As the coronavirus pandemic has caused the global economy into a severe recession, the Group of 20 nations on Wednesday announced a one-year standstill for world's poorest countries in a bid to give them some respite from its ongoing struggle with the virus outbreak.&nbsp;

The G20 also reiterated its commitment to using "all possible tools" to tackle the health and economic crisis caused by COVID-19.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/business-economy/global-shares-fall-weighed-down-by-cheap-oil-and-economic-warnings-292692">Global shares fall, weighed down by cheap oil and economic warnings</a>

The G20 finance ministers and central bankers agreed on "a time-bound suspension of debt service payments for the poorest countries," and in the communique after their virtual meeting, said, "All bilateral official creditors will participate in this initiative."&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/business-economy/pandemic-causing-deep-recession-and-it-could-get-worse-imf-292545">Pandemic causing deep recession, and it could get worse: IMF</a>

Saudi Finance Minister Mohammed Al-Jadaan, who currently heads the group, said this means "poor countries don't need to worry about repaying over the course of the next 12 months."

The move will "provide north of $20 billion of immediate liquidity" for poor countries to use "for their health system and support their people facing COVID-19," Al-Jadaan said in a press briefing.

He also said that the G20 officials are committed to "further support the world as it faces this pandemic".&nbsp;

The International Monetary Fund and World Bank had been urging the governments to provide debt relief to the countries most in need, and finance ministers from the Group of Seven developed economies agreed to do so on Tuesday.&nbsp;

The IMF and World Bank praised the announcement, describing it "a powerful, fast-acting initiative that will do much to safeguard the lives and livelihoods of millions of the most vulnerable people."

Both the international lending organisations have rushed to roll out emergency financing and received air requests from more than 100 countries.&nbsp;

The IMF has called the current economic crisis the "Great Lockdown," warning that it will cut $9 trillion off global growth as the global economy contracts by three per cent this year, the worst since the Great Depression in the 1930s.&nbsp;

It estimates that 20 governments already have committed nearly $8 trillion towards fighting the virus and providing economic relief to households and companies struggling to weather the crisis.

As the "pandemic continues its deadly march around the world," how much more will "depend on how effective measures are, and how quickly the virus retreats," IMF chief Kristalina Georgieva said.

(With AFP inputs)

As the coronavirus pandemic has caused the global economy into a severe recession, the Group of 20 nations on Wednesday announced a one-year standstill for world's poorest countries in a bid to give them some respite from its ongoing struggle with the virus outbreak.

As the coronavirus pandemic has caused the global economy into a severe recession, the Group of 20 nations on Wednesday announced a one-year standstill for world's poorest countries in a bid to give them some respite from its ongoing struggle with the virus outbreak. The G20 also reiterated its commitment to using "all possible tools" to tackle the health and economic crisis caused by COVID-19. Also read | Global shares fall, weighed down by cheap oil and economic warnings The G20 finance ministers and central bankers agreed on "a time-bound suspension of debt service payments for the poorest countries," and in the communique after their virtual meeting, said, "All bilateral official creditors will participate in this initiative." Also read | Pandemic causing deep recession, and it could get worse: IMF Saudi Finance Minister Mohammed Al-Jadaan, who currently heads the group, said this means "poor countries don't need to worry about repaying over the course of the next 12 months." The move will "provide north of $20 billion of immediate liquidity" for poor countries to use "for their health system and support their people facing COVID-19," Al-Jadaan said in a press briefing. He also said that the G20 officials are committed to "further support the world as it faces this pandemic". The International Monetary Fund and World Bank had been urging the governments to provide debt relief to the countries most in need, and finance ministers from the Group of Seven developed economies agreed to do so on Tuesday. The IMF and World Bank praised the announcement, describing it "a powerful, fast-acting initiative that will do much to safeguard the lives and livelihoods of millions of the most vulnerable people." Both the international lending organisations have rushed to roll out emergency financing and received air requests from more than 100 countries. The IMF has called the current economic crisis the "Great Lockdown," warning that it will cut $9 trillion off global growth as the global economy contracts by three per cent this year, the worst since the Great Depression in the 1930s. It estimates that 20 governments already have committed nearly $8 trillion towards fighting the virus and providing economic relief to households and companies struggling to weather the crisis. As the "pandemic continues its deadly march around the world," how much more will "depend on how effective measures are, and how quickly the virus retreats," IMF chief Kristalina Georgieva said. (With AFP inputs)

Coronavirus: G20 agrees to provide debt relief to poorest countries

The global economy will contract by 3% this year as countries around the world shrink at the fastest pace in decades

Is the world prepared for the worst recession

The chief economist of the International Monetary Fund (IMF) Geeta Gopinath is addressing the media live. Watch video.

IMF's grim forecast for global economy: Chief economist Geeta Gopinath addresses media

The world has come to a standstill while the global economy and markets are in a tailspin. While the global economy is possibly heading into a recession, there is still hope of quick recovery&nbsp;if the virus starts subsiding in a month or two.

Central banks and governments are going all out to contain economic collapse. Still enough damage is caused and the economy can be as bad as the 2008 crisis or even worse. Although if we look across the globe different areas are painted with a different brush. So, let’s try to find out what’s in store for the world in an era after the Coronavirus crisis is over.

The US damaged severely but its growth magnets still intact: An optimist of all times, US President Donald Trump has also declared this is bad and more than 100,000 people can die in the US. Various estimates suggest that the US economy is slipping into recession while unemployment is shooting up.&nbsp;

Its condition will be critical but will recover strongly because before Coronavirus crisis struck, the world's largest economy&nbsp;was on a strong footing. Its GDP grew at a moderate pace, unemployment was at a 50-year low and its global banks were strong. So, a strong foundation gives hope of a revival. Besides this, its three growth magnets would continue to attract the best talent. The top layer of finance, tech and show business would love to work in Wall Street, Silicon Valley and Hollywood now, even at faster rates because the rest of the world is relatively more damaged. Therefore, it is likely to emerge out of ashes like a phoenix.

China: 
 
Even before Coronavirus pandemic struck, the Chinese GDP growth rate was at 30 years low, its economy was showing cracks and trade war was damaging the Chinese economy. When the virus entered in this mix it slowed Chinese economy even further. During January-February, its industrial production figures and its retail sales data were very gloomy. It became clear that there will be a contraction in the Chinese economy during the January-March quarter. However, China was able to contain it just in Wuhan so the situation in the country is getting better. Economic indicators like PMI, shipping data, road congestion is reported to be improving. This implies that economic revival has begun. In fact, various reports predict that China will be the fastest-growing economy this year. Although risks associated with China are global and there could be a political backlash due to lack of transparency and fall in export demand (which contributes to 20 per cent of its GDP). So the Chinese economy showed signs of crack before virus but it was able to contain virus quickly. Therefore cracks did not break open and the economy could very well soon be back on track. Also with Coronavirus, the attention of the US has temporarily shifted away from the trade war and its high trade deficit with China. This will reduce China's risk for some more time.

India may recover quickly if the virus is contained in stage 2: In India, things were bleak even before Coronavirus knocked at its doors. GDP growth fell from 8 per cent to around 5 per cent, credit crunch, poor business sentiment, fiscal deficit breaching target, uneven monsoon and most importantly a fall in consumption were the risks already present. Even if the pandemic becomes worse, there is a possibility of economy quickly coming back on track and there would be lower damage due to coronavirus as compared to many other global nations. So, the increase in unemployment and bankruptcies would be relatively less than the rest of the world. The situation of NPAs was resolved to a large extent even before virus so that provided some cushion. Fall in oil price would also provide some relief. All that will ensure quick recovery and inflow of foreign money. Moreover, various estimations indicate that besides China, India can be the only major country to have positive growth.&nbsp;

So, the April-June quarter will be problematic but after that things will start improving and in October quarter we may see growth speeding up. &nbsp;

Europe: 
 
The European economy was already weak due to double whammy of a trade war and Brexit. Germany, UK even went in contraction for a quarter last year, even for October-December quarter UK GDP stagnated. Due to the ageing population coronavirus shook the continent and can cause long-lasting impact. Brexit negotiations are not on the best footing also. European Union is unable to come up with joint action which indicates the underlying tension between the member states. So all of this poses a serious question about its recovery for a very long time.

Gulf: 
 
Gulf countries are facing a tough time as a fall in oil price will put huge pressure on income. Pilgrimage tourism, holiday tourism and expo events in UAE, Saudi and Iran will take a hit due to Corona pandemic. Since they need to give relief packages, there will be a strain on fiscal deficits. Postponement of Dubai 2020 Expo can impact UAE's plan to diversify the economy away from oil and tensions in OPEC+, with Saudi Arabia and Russia also pose concerns.&nbsp;

Stock Markets: 
 
Go for major indices of the US, China and India, while Europe and Gulf countries can be avoided for the time being. Once virus peaks and markets hit bottom, you can also start dipping in mid-caps.

Sectoral Situation: 
 
As people will be more concerned about health, there would be a large increase in health insurance and hence insurance and healthcare sector would gain. Some banks are quite stable so they would survive but weaker ones will struggle so the wave of mergers and acquisitions in the financial sector can be in offing. IT companies, providing specific services like video streaming, e-commerce, video and teleconferencing stand to emerge victorious as well. For internet giants, advertising revenue can take a hit. But they stand to gain sensational insight in the human mind as to how it reacted during different phases of virus and lockdown. This would help them significantly in attracting user on their sites, retaining them and even influencing them. Cargo and Shipping Industry will recover quickly as people may hesitate to go out,&nbsp;but would continue ordering online. New players like automakers are entering in biotech and new innovations can revolutionise the biotech industry.&nbsp;

Oil Industry: 
 
A fall in oil prices would also reduce the demand for its substitute goods like alternative sources of energy which would impact their development. Since lockdown shows the viability of working from home, commercial real estate can suffer. Due to the rise in unemployment, there isn't any likely rapid recovery in FMCG sector but high ticket items like real estate, passenger vehicles and luxury goods will take even longer to recover. Recovery in Aviation and Tourism will be slow due to the double whammy of rising unemployment and fear of the pandemic. 
For individual stocks company’s management can be the best gauge. As in such time, past data may not be able to indicate future development but efficient, creative management can give assurance that will come up with a way to navigate this tide.

The current situation is like shock therapy and in the post-Coronavirus era, there will be a tectonic shift in the world economic order. 
 
(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

The world has come to a standstill while the global economy and markets are in a tailspin. While the global economy is possibly heading into a recession, there is still hope of quick recovery if the virus starts subsiding in a month or two.

The world has come to a standstill while the global economy and markets are in a tailspin. While the global economy is possibly heading into a recession, there is still hope of quick recovery if the virus starts subsiding in a month or two. Central banks and governments are going all out to contain economic collapse. Still enough damage is caused and the economy can be as bad as the 2008 crisis or even worse. Although if we look across the globe different areas are painted with a different brush. So, let’s try to find out what’s in store for the world in an era after the Coronavirus crisis is over. The US damaged severely but its growth magnets still intact: An optimist of all times, US President Donald Trump has also declared this is bad and more than 100,000 people can die in the US. Various estimates suggest that the US economy is slipping into recession while unemployment is shooting up. Its condition will be critical but will recover strongly because before Coronavirus crisis struck, the world's largest economy was on a strong footing. Its GDP grew at a moderate pace, unemployment was at a 50-year low and its global banks were strong. So, a strong foundation gives hope of a revival. Besides this, its three growth magnets would continue to attract the best talent. The top layer of finance, tech and show business would love to work in Wall Street, Silicon Valley and Hollywood now, even at faster rates because the rest of the world is relatively more damaged. Therefore, it is likely to emerge out of ashes like a phoenix. China: Even before Coronavirus pandemic struck, the Chinese GDP growth rate was at 30 years low, its economy was showing cracks and trade war was damaging the Chinese economy. When the virus entered in this mix it slowed Chinese economy even further. During January-February, its industrial production figures and its retail sales data were very gloomy. It became clear that there will be a contraction in the Chinese economy during the January-March quarter. However, China was able to contain it just in Wuhan so the situation in the country is getting better. Economic indicators like PMI, shipping data, road congestion is reported to be improving. This implies that economic revival has begun. In fact, various reports predict that China will be the fastest-growing economy this year. Although risks associated with China are global and there could be a political backlash due to lack of transparency and fall in export demand (which contributes to 20 per cent of its GDP). So the Chinese economy showed signs of crack before virus but it was able to contain virus quickly. Therefore cracks did not break open and the economy could very well soon be back on track. Also with Coronavirus, the attention of the US has temporarily shifted away from the trade war and its high trade deficit with China. This will reduce China's risk for some more time. India may recover quickly if the virus is contained in stage 2: In India, things were bleak even before Coronavirus knocked at its doors. GDP growth fell from 8 per cent to around 5 per cent, credit crunch, poor business sentiment, fiscal deficit breaching target, uneven monsoon and most importantly a fall in consumption were the risks already present. Even if the pandemic becomes worse, there is a possibility of economy quickly coming back on track and there would be lower damage due to coronavirus as compared to many other global nations. So, the increase in unemployment and bankruptcies would be relatively less than the rest of the world. The situation of NPAs was resolved to a large extent even before virus so that provided some cushion. Fall in oil price would also provide some relief. All that will ensure quick recovery and inflow of foreign money. Moreover, various estimations indicate that besides China, India can be the only major country to have positive growth. So, the April-June quarter will be problematic but after that things will start improving and in October quarter we may see growth speeding up. Europe: The European economy was already weak due to double whammy of a trade war and Brexit. Germany, UK even went in contraction for a quarter last year, even for October-December quarter UK GDP stagnated. Due to the ageing population coronavirus shook the continent and can cause long-lasting impact. Brexit negotiations are not on the best footing also. European Union is unable to come up with joint action which indicates the underlying tension between the member states. So all of this poses a serious question about its recovery for a very long time. Gulf: Gulf countries are facing a tough time as a fall in oil price will put huge pressure on income. Pilgrimage tourism, holiday tourism and expo events in UAE, Saudi and Iran will take a hit due to Corona pandemic. Since they need to give relief packages, there will be a strain on fiscal deficits. Postponement of Dubai 2020 Expo can impact UAE's plan to diversify the economy away from oil and tensions in OPEC+, with Saudi Arabia and Russia also pose concerns. Stock Markets: Go for major indices of the US, China and India, while Europe and Gulf countries can be avoided for the time being. Once virus peaks and markets hit bottom, you can also start dipping in mid-caps. Sectoral Situation: As people will be more concerned about health, there would be a large increase in health insurance and hence insurance and healthcare sector would gain. Some banks are quite stable so they would survive but weaker ones will struggle so the wave of mergers and acquisitions in the financial sector can be in offing. IT companies, providing specific services like video streaming, e-commerce, video and teleconferencing stand to emerge victorious as well. For internet giants, advertising revenue can take a hit. But they stand to gain sensational insight in the human mind as to how it reacted during different phases of virus and lockdown. This would help them significantly in attracting user on their sites, retaining them and even influencing them. Cargo and Shipping Industry will recover quickly as people may hesitate to go out, but would continue ordering online. New players like automakers are entering in biotech and new innovations can revolutionise the biotech industry. Oil Industry: A fall in oil prices would also reduce the demand for its substitute goods like alternative sources of energy which would impact their development. Since lockdown shows the viability of working from home, commercial real estate can suffer. Due to the rise in unemployment, there isn't any likely rapid recovery in FMCG sector but high ticket items like real estate, passenger vehicles and luxury goods will take even longer to recover. Recovery in Aviation and Tourism will be slow due to the double whammy of rising unemployment and fear of the pandemic. For individual stocks company’s management can be the best gauge. As in such time, past data may not be able to indicate future development but efficient, creative management can give assurance that will come up with a way to navigate this tide. The current situation is like shock therapy and in the post-Coronavirus era, there will be a tectonic shift in the world economic order. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

What's in store for the global economy after coronavirus is over?

RBI governor Shaktikanata Das address amid Covid-19 outbreak. Rbi lowered the key repo rate by 75 basis points (bps) to 4.4 per cent, to help the economic slowdown in the wake of the coronavirus outbreak. The reverse repo rate now stands at 4 per cent, down 90 bps.

RBI briefing amid coronavirus outbreak | Slashes Repo rate by 75 bps

The coronavirus pandemic has driven the global economy into a downturn that will require massive funding to help developing nations, IMF chief Kristalina Georgieva said Friday.

"It is clear that we have entered a recession" that will be worse than in 2009 following the global financial crisis, she said in an online press briefing.

Also read | <a href="https://www.wionews.com/world/coronavirus-pandemic-sets-the-stage-for-unprecedented-global-economic-losses-288927">Coronavirus pandemic sets the stage for unprecedented global economic losses</a>

With the worldwide economic "sudden stop," Georgieva said the fund's estimate "for the overall financial needs of emerging markets is $2.5 trillion."&nbsp;

But she warned that estimate "is on the lower end."

Governments in emerging markets, which have suffered an exodus of capital of more than $83 billion in recent weeks, can cover much of that, but "clearly the domestic resources are insufficient" and many already have high debt loads.

Over 80 countries, mostly of low incomes, have already have requested emergency aid from the International Monetary Fund, she said.

"We do know that their own reserves and domestic resources will not be sufficient," Georgieva said, adding that the fund is aiming to beef up its response "to do more, do it better, do it faster than ever before."

The IMF chief spoke to reporters following a virtual meeting with the Washington-based lender's steering committee, when she officially requested an increase in the fund's fast-deploying emergency facilities from their current level of around $50 billion.

She also welcomed the $2.2 trillion economic package approved by the US Senate, saying "it is absolutely necessary to cushion the world's largest economy against an abrupt drop the economic activities." 
&nbsp;

The coronavirus pandemic has driven the global economy into a downturn that will require massive funding to help developing nations, IMF chief Kristalina Georgieva said Friday.

The coronavirus pandemic has driven the global economy into a downturn that will require massive funding to help developing nations, IMF chief Kristalina Georgieva said Friday. "It is clear that we have entered a recession" that will be worse than in 2009 following the global financial crisis, she said in an online press briefing. Also read | Coronavirus pandemic sets the stage for unprecedented global economic losses With the worldwide economic "sudden stop," Georgieva said the fund's estimate "for the overall financial needs of emerging markets is $2.5 trillion." But she warned that estimate "is on the lower end." Governments in emerging markets, which have suffered an exodus of capital of more than $83 billion in recent weeks, can cover much of that, but "clearly the domestic resources are insufficient" and many already have high debt loads. Over 80 countries, mostly of low incomes, have already have requested emergency aid from the International Monetary Fund, she said. "We do know that their own reserves and domestic resources will not be sufficient," Georgieva said, adding that the fund is aiming to beef up its response "to do more, do it better, do it faster than ever before." The IMF chief spoke to reporters following a virtual meeting with the Washington-based lender's steering committee, when she officially requested an increase in the fund's fast-deploying emergency facilities from their current level of around $50 billion. She also welcomed the $2.2 trillion economic package approved by the US Senate, saying "it is absolutely necessary to cushion the world's largest economy against an abrupt drop the economic activities."

Clear we have entered recession, would be worse than 2009: IMF

As global leaders scramble to choose between retaining economic activity to prevent the halt of growth and locking down their countries in order to prevent an outbreak, United States President Donald Trump has chosen to strike a balance.

As the virus is expected to peak in the United States soon, Trump is attempting to avoid an economic meltdown while hoping to contain the virus.

"Our country was not built to be shut down," the President announced on Monday. "We are going to be opening up our country for business because our country was meant to be open".

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/donald-trump-spreading-of-coronavirus-not-fault-of-asian-americans-288166/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

"We are going to get it all going again very soon," he said. Additionally, he openly said that he was not looking at months, but only a few weeks.

The United States recently recorded over 40,000 cases. 100 deaths were also witnessed, a first for the country since coronavirus reached the nation.

Also read:&nbsp;<a href="https://www.wionews.com/world/new-york-state-accounts-for-over-5-of-global-coronavirus-cases-numbers-expected-to-increase-288271" hreflang="en">New York state accounts for over 5% of global coronavirus cases, numbers expected to increase</a>

One of the members of Donald Trump’s coronavirus task force, Dr Deborah Birx claimed that the virus was spreading five times faster in New York than other states.

The president has claimed that things are “bad”, but is sceptical about social distancing.

&nbsp;"If it were up to the doctors, they may say let's keep it shut down, let's shut down the entire world", he claimed.

The conflict has brought out the differing approaches that can be undertaken during a pandemic, which is to lock down the country to save lives, or to forego this in favour of protecting economic growth.

CNN reported that the administration is considering limiting work to younger people, who are less prone to critical complications.

In the face of potential unemployment, the administration is facing a dilemma.&nbsp;

However, most states in the United States have imposed directed people to stay at home, with businesses closed, and schools shut.

<h6><img alt="ppp" data-entity-type="file" data-entity-uuid="b819ce09-f89a-43c2-9e9c-9173aa131a26" src="//cdn.wionews.com/sites/default/files/inline-images/Untitled%20design%20%284%29_47.jpg" /> 
US President Donald Trump speaks during the daily briefing on the novel coronavirus, COVID-19, at the White House, March 23, 2020, in Washington, DC | AFP 
 
&nbsp;</h6>

The US healthcare system is currently ill-equipped to deal with the influx of patients.

The President insisted that “we can do two things at once”, implying that the country need not impose a lockdown and shut down the economy.

However, global trends have made it abundantly clear that there is no middle ground in a situation like this. Countries can either shut their societies down to contain the virus, or work as usual and risk infection.

The man at the helm of the president's task force: Dr Anthony Fauci, was nowhere to be seen alongside Trump. Instead, he attended meetings attacking the pandemic.&nbsp;

Also read:&nbsp;<a href="https://www.wionews.com/world/could-united-states-become-the-next-epicentre-of-covid-19-288258" hreflang="en">Could United States become the next epicentre of COVID-19?</a>

With the number of coronavirus cases rising rapidly, the World Health Organization (WHO) has warned that the United States could become the next epicentre of the pandemic.

“A very large acceleration” in the number of coronavirus cases has been recorded recently.

Out of the new cases recorded in the last 24 hours, 85 per cent came from Europe and the United States. Out of these, 40 per cent cases alone came from the US.

Recently, the president tweeted out and reaffirmed his faith in Americans to aptly deal with the virus.

"Our people want to return to work," he said on Twitter. "They will practice Social Distancing and all else, and Seniors will be watched over protectively &amp; lovingly. We can do two things together. THE CURE CANNOT BE WORSE (by far) THAN THE PROBLEM!"

Also read:&nbsp;<a href="https://www.wionews.com/world/covid-19-spain-virus-death-toll-rises-by-514-to-2696-288261" hreflang="en">COVID-19: Spain virus death toll rises by 514 to 2,696</a>

(With inputs from agencies)

As global leaders scramble to choose between retaining economic activity to prevent the halt of growth and locking down their countries in order to prevent an outbreak, United States President Donald Trump has chosen to strike a balance.

As global leaders scramble to choose between retaining economic activity to prevent the halt of growth and locking down their countries in order to prevent an outbreak, United States President Donald Trump has chosen to strike a balance. As the virus is expected to peak in the United States soon, Trump is attempting to avoid an economic meltdown while hoping to contain the virus. "Our country was not built to be shut down," the President announced on Monday. "We are going to be opening up our country for business because our country was meant to be open". "We are going to get it all going again very soon," he said. Additionally, he openly said that he was not looking at months, but only a few weeks. The United States recently recorded over 40,000 cases. 100 deaths were also witnessed, a first for the country since coronavirus reached the nation. Also read: New York state accounts for over 5% of global coronavirus cases, numbers expected to increase One of the members of Donald Trump’s coronavirus task force, Dr Deborah Birx claimed that the virus was spreading five times faster in New York than other states. The president has claimed that things are “bad”, but is sceptical about social distancing. "If it were up to the doctors, they may say let's keep it shut down, let's shut down the entire world", he claimed. The conflict has brought out the differing approaches that can be undertaken during a pandemic, which is to lock down the country to save lives, or to forego this in favour of protecting economic growth. CNN reported that the administration is considering limiting work to younger people, who are less prone to critical complications. In the face of potential unemployment, the administration is facing a dilemma. However, most states in the United States have imposed directed people to stay at home, with businesses closed, and schools shut. US President Donald Trump speaks during the daily briefing on the novel coronavirus, COVID-19, at the White House, March 23, 2020, in Washington, DC | AFP The US healthcare system is currently ill-equipped to deal with the influx of patients. The President insisted that “we can do two things at once”, implying that the country need not impose a lockdown and shut down the economy. However, global trends have made it abundantly clear that there is no middle ground in a situation like this. Countries can either shut their societies down to contain the virus, or work as usual and risk infection. The man at the helm of the president's task force: Dr Anthony Fauci, was nowhere to be seen alongside Trump. Instead, he attended meetings attacking the pandemic. Also read: Could United States become the next epicentre of COVID-19? With the number of coronavirus cases rising rapidly, the World Health Organization (WHO) has warned that the United States could become the next epicentre of the pandemic. “A very large acceleration” in the number of coronavirus cases has been recorded recently. Out of the new cases recorded in the last 24 hours, 85 per cent came from Europe and the United States. Out of these, 40 per cent cases alone came from the US. Recently, the president tweeted out and reaffirmed his faith in Americans to aptly deal with the virus. "Our people want to return to work," he said on Twitter. "They will practice Social Distancing and all else, and Seniors will be watched over protectively & lovingly. We can do two things together. THE CURE CANNOT BE WORSE (by far) THAN THE PROBLEM!" Also read: COVID-19: Spain virus death toll rises by 514 to 2,696 (With inputs from agencies)

'Cure can't be worse than problem', announces Trump as he vows to reopen US economy amid COVID-19 crisis

The G20 countries are working towards finding ways to combat the coronavirus crisis. After the Indian PM Narendra Modi invited Saudi Arabia for a video conference. Crown Prince Mohammed bin Salman has accepted the invitation. The G-20 leaders will be putting together a coordinated strategy to protect the people and safeguard the global economy. Watch report:

WION Dispatch: Saudi Prince accepts PM Modi's invitation to deal with Coronavirus crisis

The US federal reserve took an initiative to face the economic crisis due to Covid-19. This is the second emergency fed rate cut in two weeks. US President Donald Trump welcomed this move

WION Dispatch: Second Emergency fed rate cut

The Bank of Japan was "ready to cut interest rates in negative areas" as it became the first G7 central bank to follow the Federal Reserve's weekend intervention.

Bank of Japan eases its credit policy to stem economy after Fed reserve slashes interest rates

Emergency action has been taken to support the economy during the Coronavirus epidemic, the Federal Reserve announced on Sunday that it would cut its target interest rate to near zero.

Federal reserve slashes interest rates to zero amid global economy crisis

The global coronavirus outbreak has generated both demand and supply shocks across the global economy. Covid-19 is likely to cost the global economy $1TN. Watch report:

Your Story: Covid-19 likely to cost $1TN to global economy

Indian economy is facing a tough time but it seems we are at the end of it and dawn is approaching.&nbsp;

For the October-December quarter, GDP grew at 4.7 per cent in line with expectations of various estimates while the growth rate for the September quarter was revised up to 5.1 per cent.&nbsp;

At the same time, industrial production of 8 core sectors grew for the second month in January while growth in the core sectors for the month of December was also revised up from 1.3 to 2.1 per cent. Before that, it showed that there was a contraction for 4 months. Manufacturing PMI for the month of January also showed sharp uptick when it grew from 52.7 to 55.3. While other high-frequency indicators like passenger vehicle sales, rail freight traffic are giving mixed signals. Inflation has reached 7.59 per cent but that seemed to be due to perishable goods and is expected to come down.&nbsp;

The government has breached its fiscal deficit target, but looking at improvement in the core sector, it seems to be paying off.&nbsp;

Although a few green shoots are emerging which are trying hard to sustain, but before we dive into that, let’s take a look at what led to the slowdown.&nbsp;

Story of a current slowdown began with the delayed recognition of the twin balance sheet. It basically meant that companies were not profitable so they were unable to pay back their loans and since banks did not receive the previous loans they were unable to lend more money.

Due to this investment started deaccelerating at a time when the Indian economy was growing rapidly and a high rate of investment was required to maintain it. At the same time, the central bank increased the interest rates, following which inflation fell quite quickly.

Now high-interest rates, coupled with low inflation, led to the high real rate of interest which further dented the investments. This, in turn, impacted the job and wage growth rate.&nbsp;

All this happened in the labour-intensive sector, so a large number of people were affected which translated into a lower level of consumption, while rural consumption also fell due to the problem of uneven monsoon.&nbsp;

Since businesses were already under pressure, this fall in consumption had a multiplier effect which led to a bigger fall in investments and more downsizing by firms. For example, in the FMCG sector - the sales growth in rural areas is generally more than urban counterpart but last year it fell to almost half.&nbsp;

Due to a tight balance sheet of banks, NBFC sector (Non-Banking Finance Company) emerged into prominence and its lending increased, specifically for high ticket items like cars and homes. Also, NBFCs give a huge amount of loan to the unorganised sector. But shadow banks also took a hit after ILFS fiasco as lenders’ trust on NBFCs dented.&nbsp;

Now the global economy was also facing headwinds due to geopolitical tensions in the form of a trade war and Brexit but in most of the developed countries, the labour market was quite strong and that supported consumption. Since India's consumption also took a hit, we saw a sharp fall in the Indian growth rate as compared to the rest of the world.&nbsp;

Not to forget, the fall in investments affected the competitiveness and productivity of Indian firms at a global level (potentially), and this along with global slowdown dented the exports.&nbsp;

Government is in full fledge mode to revive growth, it has reduced corporate tax, changed personal income tax structure, set up infrastructure fund of Rs 105 lakh crore, while also coming up with various sector-specific measures. Although the government's earnings are facing stress due to low tax collection and delay in the divestment process, but right now it is more concerned about growth.

So if the economy is revived, even though the fiscal deficit target is breached, the long term fiscal consolidation target will also be achieved.

Reserve Bank of India (RBI) is also showing up its ammunition in the fight against slowdown, as it reduced the repo rate by 135 basis point.&nbsp;

And when inflation constrained it from reducing the rate further, the RBI came up with other measures like operation twist (buying long term bonds and selling short term bonds to reduce long term interest rates), easing CRR norms on incremental loans to boost lending for MSME, automobile and residential sector.&nbsp;

Furthermore, the central bank conducted long term repo operation, so banks can get money at cheaper rates and also linked more loans to external benchmarks like repo rates.&nbsp;

Although RBI reduced rates by 135 basis points, banks have not completely transmitted them because of which their profitability has improved, also the previous NPAs are being resolved.

And quality shadow banks (High-grade NBFCs) are also emerging stronger as their borrowing cost has reduced.&nbsp;

Still, there are few headwinds like telecom sector and now the coronavirus is a googly which took everyone by surprise.&nbsp;

Coronavirus has disrupted the supply chain and has impacted both the manufacturing and the service sector. The virus is spreading across the world and it can become a pandemic, which can cause a global recession. On the global front, fear of recession is quite high as indicated by a sharp fall in financial markets.&nbsp;

The current slowdown is basically a result of the policy - prevention is better than cure as business activities are being shut off to contain virus outbreak while previously it was more like a cure after the damage.

Economic fundamentals, like job market and consumption, are still strong so if the virus is contained soon, then sharp recovery can be expected in sentiment.&nbsp;

In the current scenario, the high-frequency indicator will have a favourable base effect which might give a further boost to the sentiment.&nbsp;

Also, an incident like this brings countries closer and to revive the global economy from something like this, a collaborated action can be required which would lead to countries shifting from protectionism to a more open economy.&nbsp;

This would boost exports growth in India while attracting foreign money in the form of both FPI and FDI.&nbsp; 
 
(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)&nbsp;

Indian economy is facing a tough time but it seems we are at the end of it and dawn is approaching. For the October-December quarter, GDP grew at 4.7 per cent in line with expectations of various estimates while the growth rate for the September quarter was revised up to 5.

Indian economy is facing a tough time but it seems we are at the end of it and dawn is approaching. For the October-December quarter, GDP grew at 4.7 per cent in line with expectations of various estimates while the growth rate for the September quarter was revised up to 5.1 per cent. At the same time, industrial production of 8 core sectors grew for the second month in January while growth in the core sectors for the month of December was also revised up from 1.3 to 2.1 per cent. Before that, it showed that there was a contraction for 4 months. Manufacturing PMI for the month of January also showed sharp uptick when it grew from 52.7 to 55.3. While other high-frequency indicators like passenger vehicle sales, rail freight traffic are giving mixed signals. Inflation has reached 7.59 per cent but that seemed to be due to perishable goods and is expected to come down. The government has breached its fiscal deficit target, but looking at improvement in the core sector, it seems to be paying off. Although a few green shoots are emerging which are trying hard to sustain, but before we dive into that, let’s take a look at what led to the slowdown. Story of a current slowdown began with the delayed recognition of the twin balance sheet. It basically meant that companies were not profitable so they were unable to pay back their loans and since banks did not receive the previous loans they were unable to lend more money. Due to this investment started deaccelerating at a time when the Indian economy was growing rapidly and a high rate of investment was required to maintain it. At the same time, the central bank increased the interest rates, following which inflation fell quite quickly. Now high-interest rates, coupled with low inflation, led to the high real rate of interest which further dented the investments. This, in turn, impacted the job and wage growth rate. All this happened in the labour-intensive sector, so a large number of people were affected which translated into a lower level of consumption, while rural consumption also fell due to the problem of uneven monsoon. Since businesses were already under pressure, this fall in consumption had a multiplier effect which led to a bigger fall in investments and more downsizing by firms. For example, in the FMCG sector - the sales growth in rural areas is generally more than urban counterpart but last year it fell to almost half. Due to a tight balance sheet of banks, NBFC sector (Non-Banking Finance Company) emerged into prominence and its lending increased, specifically for high ticket items like cars and homes. Also, NBFCs give a huge amount of loan to the unorganised sector. But shadow banks also took a hit after ILFS fiasco as lenders’ trust on NBFCs dented. Now the global economy was also facing headwinds due to geopolitical tensions in the form of a trade war and Brexit but in most of the developed countries, the labour market was quite strong and that supported consumption. Since India's consumption also took a hit, we saw a sharp fall in the Indian growth rate as compared to the rest of the world. Not to forget, the fall in investments affected the competitiveness and productivity of Indian firms at a global level (potentially), and this along with global slowdown dented the exports. Government is in full fledge mode to revive growth, it has reduced corporate tax, changed personal income tax structure, set up infrastructure fund of Rs 105 lakh crore, while also coming up with various sector-specific measures. Although the government's earnings are facing stress due to low tax collection and delay in the divestment process, but right now it is more concerned about growth. So if the economy is revived, even though the fiscal deficit target is breached, the long term fiscal consolidation target will also be achieved. Reserve Bank of India (RBI) is also showing up its ammunition in the fight against slowdown, as it reduced the repo rate by 135 basis point. And when inflation constrained it from reducing the rate further, the RBI came up with other measures like operation twist (buying long term bonds and selling short term bonds to reduce long term interest rates), easing CRR norms on incremental loans to boost lending for MSME, automobile and residential sector. Furthermore, the central bank conducted long term repo operation, so banks can get money at cheaper rates and also linked more loans to external benchmarks like repo rates. Although RBI reduced rates by 135 basis points, banks have not completely transmitted them because of which their profitability has improved, also the previous NPAs are being resolved. And quality shadow banks (High-grade NBFCs) are also emerging stronger as their borrowing cost has reduced. Still, there are few headwinds like telecom sector and now the coronavirus is a googly which took everyone by surprise. Coronavirus has disrupted the supply chain and has impacted both the manufacturing and the service sector. The virus is spreading across the world and it can become a pandemic, which can cause a global recession. On the global front, fear of recession is quite high as indicated by a sharp fall in financial markets. The current slowdown is basically a result of the policy - prevention is better than cure as business activities are being shut off to contain virus outbreak while previously it was more like a cure after the damage. Economic fundamentals, like job market and consumption, are still strong so if the virus is contained soon, then sharp recovery can be expected in sentiment. In the current scenario, the high-frequency indicator will have a favourable base effect which might give a further boost to the sentiment. Also, an incident like this brings countries closer and to revive the global economy from something like this, a collaborated action can be required which would lead to countries shifting from protectionism to a more open economy. This would boost exports growth in India while attracting foreign money in the form of both FPI and FDI. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

How this economic slowdown is different from the previous ones

Companies across the board are planning to lay off employees in hundreds and thousands. There is no confidence in the global economic situation.

Now, Coronavirus too is rearing its head, threatening to collapse the world's factory - China. The job cuts have not spared any major economy, including India. &nbsp;

The global job crisis can turn this year into a year of job cuts. Here's a rundown of the jobs situation across the world:

As the global economy teeters on the recession, last year's press releases on cost-cutting are turning into this year's pink slips.

2020 is turning out to be the year of job cuts. Whatever we may choose to blame it on - Brexit, US-China trade war or the deadly coronavirus. It is certain that there will be fewer jobs in the coming year. Nearly 50 banks across the world will together lay off over 75,000 employees.

HSBC alone is planning to cull 35,000 jobs, Deutsche Bank is planning to get rid of 18,000 employees by 2022. And JP Morgan chase plans to dismiss hundreds of employees this year after letting go nearly 7,000 people in the last four years.

All this in an attempt to slash costs. There is one more reason - with banks going digital, consumer-facing executives have become dead-weight.

And it's not just banks, the auto industry is on a bumpy road. 
 
WATCH: Is 2020 the year of job cuts?&nbsp;

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The once-resilient German auto industry today resembles the now sleepy town of Detroit - the city that marks the fall of the US auto industry.

Globally, more than 5,00,000 auto-related jobs were shed last year. Nearly 1,00,000 auto workers have lost their jobs in Germany.

With the maker of Mercedes cars - Daimler - culling 10,000 jobs recently, now, Renault is planning to cut 20,000 jobs in Germany alone.

Agreed, there is a massive shift to electric vehicles. But, US President Donald Trump's trade war made it worse - Jaguar Land Rover's sales in China plummeted. The Indian-owned British luxury carmaker is now looking to cut 500 jobs at its Halewood plant in the UK.

While the trade-war was seemingly cooling off, the deadly coronavirus has led to the shutdown of factories in China. 
&nbsp; 
Cutting off auto component supplies to factories in Europe, 80,000 auto workers may lose their jobs this year.

Closer home, Bosch is planning to cut thousands of jobs in India as the domestic auto industry shows no signs of recovery.

And if Vodafone, Idea fail to gather enough money to pay off its dues to the government, over 13,000 people could lose their jobs.

Even the state-run BSNL and MTNL could not remain bloated. Nearly 93,000 employees were given the golden handshake.&nbsp;

While startups keep mushrooming, unicorns like Oyo, Paytm and Uber are shedding flab in India.

IT employees in India, especially mid-to-senior level staff, stand the risk of losing their jobs.

As most firms are likely to lay off over 5-8 per cent of the total workforce in the coming quarters which translates to about 10,000-20,000 employees in each large firm.

&nbsp;

Companies across the board are planning to lay off employees in hundreds and thousands. There is no confidence in the global economic situation. Now, Coronavirus too is rearing its head, threatening to collapse the world's factory - China.

Companies across the board are planning to lay off employees in hundreds and thousands. There is no confidence in the global economic situation. Now, Coronavirus too is rearing its head, threatening to collapse the world's factory - China. The job cuts have not spared any major economy, including India. The global job crisis can turn this year into a year of job cuts. Here's a rundown of the jobs situation across the world: As the global economy teeters on the recession, last year's press releases on cost-cutting are turning into this year's pink slips. 2020 is turning out to be the year of job cuts. Whatever we may choose to blame it on - Brexit, US-China trade war or the deadly coronavirus. It is certain that there will be fewer jobs in the coming year. Nearly 50 banks across the world will together lay off over 75,000 employees. HSBC alone is planning to cull 35,000 jobs, Deutsche Bank is planning to get rid of 18,000 employees by 2022. And JP Morgan chase plans to dismiss hundreds of employees this year after letting go nearly 7,000 people in the last four years. All this in an attempt to slash costs. There is one more reason - with banks going digital, consumer-facing executives have become dead-weight. And it's not just banks, the auto industry is on a bumpy road. WATCH: Is 2020 the year of job cuts? × The once-resilient German auto industry today resembles the now sleepy town of Detroit - the city that marks the fall of the US auto industry. Globally, more than 5,00,000 auto-related jobs were shed last year. Nearly 1,00,000 auto workers have lost their jobs in Germany. With the maker of Mercedes cars - Daimler - culling 10,000 jobs recently, now, Renault is planning to cut 20,000 jobs in Germany alone. Agreed, there is a massive shift to electric vehicles. But, US President Donald Trump's trade war made it worse - Jaguar Land Rover's sales in China plummeted. The Indian-owned British luxury carmaker is now looking to cut 500 jobs at its Halewood plant in the UK. While the trade-war was seemingly cooling off, the deadly coronavirus has led to the shutdown of factories in China. Cutting off auto component supplies to factories in Europe, 80,000 auto workers may lose their jobs this year. Closer home, Bosch is planning to cut thousands of jobs in India as the domestic auto industry shows no signs of recovery. And if Vodafone, Idea fail to gather enough money to pay off its dues to the government, over 13,000 people could lose their jobs. Even the state-run BSNL and MTNL could not remain bloated. Nearly 93,000 employees were given the golden handshake. While startups keep mushrooming, unicorns like Oyo, Paytm and Uber are shedding flab in India. IT employees in India, especially mid-to-senior level staff, stand the risk of losing their jobs. As most firms are likely to lay off over 5-8 per cent of the total workforce in the coming quarters which translates to about 10,000-20,000 employees in each large firm.

How 2020 is turning out to be the year of job cuts

IMF says covid-19 could damage the global economy. they also say its full impact will depend on how quickly it is contained.

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The economic shockwaves of the coronavirus could eclipse the 2003 Sars outbreak. China's economy is already witnessing disruptions. WION's Palki Sharma tells you how this situation could spill across the global economy.

Gravitas: Wuhan virus, The economic cost of the outbreak

How coronavirus is affecting the global economy

The<a href="https://www.wionews.com/opinions/wion-edit-summarising-the-state-of-indian-economy-274415"> International Monetary Fund </a>on Monday slashed its 2020 global growth forecast&nbsp;due to the&nbsp;slowdown&nbsp;in India and other emerging markets.&nbsp;

The sharp drop for India "accounts for the lion's share of the downward revisions," the IMF said.

However, it said that improving <a href="https://www.wionews.com/opinions/explained-how-us-iran-tensions-impact-the-economy-273030">US-China trade tensions </a>have eased uncertainty and the world economy may have hit bottom but a sharp slowdown in India is creating a drag worldwide, the IMF said.

In the latest update to the World Economic Outlook, the IMF trimmed down the global growth estimate for 2020 by one-tenth compared to the October report, dropping it to 3.3 per cent, and lowered the 2021 forecast by a bit more, to 3.4 per cent.

The reductions reflect the IMF's reassessment of economic prospects for a number of major emerging markets, notably India, where domestic demand has slowed&nbsp;sharply amid contraction of credit and stress in the non-banking sector.

<a href="https://www.wionews.com/india-news/india-to-surpass-germany-and-japan-to-become-worlds-third-largest-economy-by-2034-271033">Also read: India to surpass Germany and Japan to become world's third largest economy by 2034</a>

India saw a sharp, 1.2 percentage point cut to its 2020 growth forecast to 5.8 per cent, the IMF's biggest markdown for any emerging market, because of the domestic credit crunch.&nbsp;

Gravitas: Summarising the state of the Indian economy

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The IMF also downgraded other economies&nbsp;including Chile, which has been hit by social unrest. It said that Mexico will grow just 1.0 per cent&nbsp;in 2020, down from 1.3 per cent&nbsp;forecast in October.

Meanwhile, the IMF upgraded China's 2020 growth forecast by 0.2 percentage point to 6.0% because the US trade deal included a partial tariff reduction and cancelled tariffs on Chinese consumer goods that had been scheduled for December. These tariffs had been built into the IMF's previous forecasts.

But the Fund did not give a boost to its US growth forecast for China's pledges to increase purchases of US goods and services by $200 billion over two years. Instead, the IMF said 2020 US growth would be 0.1 percentage point lower than forecast in October, at 2.0% because of the fading stimulus effects from 2017 tax cuts and the Federal Reserve's monetary easing.

(With inputs from agencies)

&nbsp;

The International Monetary Fund on Monday slashed its 2020 global growth forecast due to the slowdown in India and other emerging markets. The sharp drop for India "accounts for the lion's share of the downward revisions," the IMF said.

The International Monetary Fund on Monday slashed its 2020 global growth forecast due to the slowdown in India and other emerging markets. The sharp drop for India "accounts for the lion's share of the downward revisions," the IMF said. However, it said that improving US-China trade tensions have eased uncertainty and the world economy may have hit bottom but a sharp slowdown in India is creating a drag worldwide, the IMF said. In the latest update to the World Economic Outlook, the IMF trimmed down the global growth estimate for 2020 by one-tenth compared to the October report, dropping it to 3.3 per cent, and lowered the 2021 forecast by a bit more, to 3.4 per cent. The reductions reflect the IMF's reassessment of economic prospects for a number of major emerging markets, notably India, where domestic demand has slowed sharply amid contraction of credit and stress in the non-banking sector. Also read: India to surpass Germany and Japan to become world's third largest economy by 2034 India saw a sharp, 1.2 percentage point cut to its 2020 growth forecast to 5.8 per cent, the IMF's biggest markdown for any emerging market, because of the domestic credit crunch. Gravitas: Summarising the state of the Indian economy × The IMF also downgraded other economies including Chile, which has been hit by social unrest. It said that Mexico will grow just 1.0 per cent in 2020, down from 1.3 per cent forecast in October. Meanwhile, the IMF upgraded China's 2020 growth forecast by 0.2 percentage point to 6.0% because the US trade deal included a partial tariff reduction and cancelled tariffs on Chinese consumer goods that had been scheduled for December. These tariffs had been built into the IMF's previous forecasts. But the Fund did not give a boost to its US growth forecast for China's pledges to increase purchases of US goods and services by $200 billion over two years. Instead, the IMF said 2020 US growth would be 0.1 percentage point lower than forecast in October, at 2.0% because of the fading stimulus effects from 2017 tax cuts and the Federal Reserve's monetary easing. (With inputs from agencies)

Sharp slowdown in India drag on world economy, says IMF

India is not alone in experiencing the ongoing growth slowdown. The clouds of a prolonged slowdown hover over every major economy in the world. The World Bank expects a modest pickup in growth in 2020. But the reality is different. Take a look.

Gravitas: Global Economy, Challenges & Opportunities

The tensions in West Asia means bad news for the global economy and the business community. Many international airlines have been re-routed, oil prices have risen sharply and volatility grips the equity markets. This report looks at some key numbers. #US #Iran #Gravitas #GlobalEconomy

Gravitas: US-Iran conflict, Impact on global economy

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