China's massive debt bubble looks all set to pop. How will a financial meltdown in China affect the world? How will it impact your shopping cart? Palki Sharma tells you why a Chinese slowdown concerns all of us.

Gravitas: What would a Chinese recession look like?

The Sri Lankan government has ended price control on essential food items in a bid to contain illegal trading and quell supply shortages.

No more price curbs, rationing on essential food items in Sri Lanka

In two weeks, America could default on its debt for the first time in history. President Joe Biden has called it a 'meteor headed for the US economy'. Are Republicans using the recession as leverage? Is Biden's bipartisanship claim a sham? Palki Sharma tells you.

Gravitas: Biden blames Republicans for looming credit default

The Coronavirus restrictions have shuttered swathes of business and the Australian economy is in recession. In this case, all eyes are on the upcoming data on GDP.

World Business Watch: Australian economy faces recession

The impact of the deadly <a href="https://www.wionews.com/topics/coronavirus">coronavirus</a> on the ‘world of work’ is four times worse than the 2008 economic crisis that brought years of recession, the United Nations (UN) has claimed.

This pandemic had a "devastating" and "cataclysmic"&nbsp;effect that has led to a lot of tiredness and frustration, the UN’s International Labour Organization (ILO) said on Monday.

Also read |&nbsp;<a href="https://www.wionews.com/world/work-from-home-employees-are-quitting-instead-of-returning-to-the-office-389202">Work from home: Employees are quitting instead of returning to the office</a>

"Taken as a whole, this represents a world of work crisis four times as severe as the one triggered by the financial crisis of 2008 and 2009," ILO director-general Guy Ryder said.

In its first-ever virtual International Labour Conference (ILC), the focus this year was fostering “human-centered” recovery from the deadly coronavirus which has taken millions of lives around the world and has negatively affected everyone’s lifestyle.

<a href="https://www.wionews.com/videos/8-tips-to-make-work-from-home-easy-and-productive-292277">WATCH |</a>

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/8-tips-to-make-work-from-home-easy-and-productive-292277/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

"The working experience of this pandemic for some has been of inconvenience, tedium, stress, and frustration. For others it has been about fear, poverty, and survival," Ryder said.

As per the report, the pandemic has taken several jobs and has also majorly deteriorated the number of quality jobs. It has also pushed more than 100 million people into poverty.

Another major issue that has come up in this pandemic is the increased working hour. As companies shifted to work from home, employees were asked to put in extra hours, leading to increased fatigue, frustration, and decreased job satisfaction and good mental health.

Experts believe the unemployment rate can affect nearly 205 million people in 2022, which is much higher than the number of 187 million in 2019.

The impact of the deadly coronavirus on the ‘world of work’ is four times worse than the 2008 economic crisis that brought years of recession, the United Nations (UN) has claimed.

The impact of the deadly coronavirus on the ‘world of work’ is four times worse than the 2008 economic crisis that brought years of recession, the United Nations (UN) has claimed. This pandemic had a "devastating" and "cataclysmic" effect that has led to a lot of tiredness and frustration, the UN’s International Labour Organization (ILO) said on Monday. Also read | Work from home: Employees are quitting instead of returning to the office "Taken as a whole, this represents a world of work crisis four times as severe as the one triggered by the financial crisis of 2008 and 2009," ILO director-general Guy Ryder said. In its first-ever virtual International Labour Conference (ILC), the focus this year was fostering “human-centered” recovery from the deadly coronavirus which has taken millions of lives around the world and has negatively affected everyone’s lifestyle. WATCH | "The working experience of this pandemic for some has been of inconvenience, tedium, stress, and frustration. For others it has been about fear, poverty, and survival," Ryder said. As per the report, the pandemic has taken several jobs and has also majorly deteriorated the number of quality jobs. It has also pushed more than 100 million people into poverty. Another major issue that has come up in this pandemic is the increased working hour. As companies shifted to work from home, employees were asked to put in extra hours, leading to increased fatigue, frustration, and decreased job satisfaction and good mental health. Experts believe the unemployment rate can affect nearly 205 million people in 2022, which is much higher than the number of 187 million in 2019.

Impact of coronavirus four times worse than 2008 financial crisis: UN

The&nbsp;eurozone&nbsp;economy fell into a second recession in less than&nbsp;a year in the first quarter, data showed on Friday, as slow vaccinations and pandemic lockdowns stopped a rebound.

The data was in stark contrast to the US, where the economy roared forward in the same period, posting annualised growth of 6.4 per cent.

China has also turned the corner from the <a href="https://www.wionews.com/search?q=Coronavirus">coronavirus pandemic</a> with an 18.3-per cent explosion in gross domestic product growth on an annual basis.

Also read |&nbsp;<a href="https://www.wionews.com/business-economy/recession-of-historic-proportions-eurozone-economy-predicted-to-contract-77-296990">'Recession of historic proportions': Eurozone economy predicted to contract 7.7%</a>

Europe has been hit hard by a second and third wave of the coronavirus pandemic, with multiple attempts to reopen the economy cut short by new outbreaks.

More recent data has given Europeans confidence that the recession will be short-lived, however, with surveys showing that manufacturing is now booming.

And with the vaccination campaign finally getting into swing, pent-up demand is expected to follow as Europeans begin to spend more in shops, at reopened restaurants and on tourism.

The EU's slow-moving recovery plan is also expected to finally get on track, giving a much-needed boost to southern countries crushed by the pandemic, such as Italy or Spain.

Germany was the major drag on growth in January to March period, with exports unable to overcome a steep drop in demand by discouraged consumers, analysts said.

The&nbsp;eurozone's consumer prices meanwhile rose in April by 1.6 per cent, moving closer to the European Central Bank's (ECB) target of two per cent.

The rise in prices, again largely fuelled by energy costs, came after five months of inflation in negative territory at the end of 2020 and a gradual turnaround earlier this year.

But core inflation, which strips out volatile components such as energy or food, actually dipped in April meaning demand is not yet fully recharging the economy.

Unemployment has largely been spared the worst ravages of the crisis that were initially feared when the pandemic froze the global economy in early 2020.

Eurostat said&nbsp;eurozone&nbsp;unemployment dipped to 8.1 per cent in March, though this was one percentage point more than a year before.

EU-wide, unemployment slipped to 7.3 per cent in March.

The eurozone economy fell into a second recession in less than a year in the first quarter, data showed on Friday, as slow vaccinations and pandemic lockdowns stopped a rebound.

The eurozone economy fell into a second recession in less than a year in the first quarter, data showed on Friday, as slow vaccinations and pandemic lockdowns stopped a rebound. The data was in stark contrast to the US, where the economy roared forward in the same period, posting annualised growth of 6.4 per cent. China has also turned the corner from the coronavirus pandemic with an 18.3-per cent explosion in gross domestic product growth on an annual basis. Also read | 'Recession of historic proportions': Eurozone economy predicted to contract 7.7% Europe has been hit hard by a second and third wave of the coronavirus pandemic, with multiple attempts to reopen the economy cut short by new outbreaks. More recent data has given Europeans confidence that the recession will be short-lived, however, with surveys showing that manufacturing is now booming. And with the vaccination campaign finally getting into swing, pent-up demand is expected to follow as Europeans begin to spend more in shops, at reopened restaurants and on tourism. The EU's slow-moving recovery plan is also expected to finally get on track, giving a much-needed boost to southern countries crushed by the pandemic, such as Italy or Spain. Germany was the major drag on growth in January to March period, with exports unable to overcome a steep drop in demand by discouraged consumers, analysts said. The eurozone's consumer prices meanwhile rose in April by 1.6 per cent, moving closer to the European Central Bank's (ECB) target of two per cent. The rise in prices, again largely fuelled by energy costs, came after five months of inflation in negative territory at the end of 2020 and a gradual turnaround earlier this year. But core inflation, which strips out volatile components such as energy or food, actually dipped in April meaning demand is not yet fully recharging the economy. Unemployment has largely been spared the worst ravages of the crisis that were initially feared when the pandemic froze the global economy in early 2020. Eurostat said eurozone unemployment dipped to 8.1 per cent in March, though this was one percentage point more than a year before. EU-wide, unemployment slipped to 7.3 per cent in March.

Eurozone enters double-dip recession in first quarter

The pandemic-induced technical recession in India has ended with growth in both GDP and the gross value added (GVA) in real terms in Q3 FY2021.

The Gross Domestic Product (GDP) grew 0.4 per cent in the October-December 2020 period compared with the same period a year back, data released by the National Statistics Office on Friday showed.

This growth compares with revised contractions of 24.4 per cent in April-June 2020 and 7.3 per cent in July-September. GDP had expanded by 3.3 per cent in October-December 2019.

While India has become one of the few major economies to post growth in the last quarter of 2020, the annual GDP estimate for the fiscal year ending March 31 has been revised to an 8 per cent contraction, deeper than an earlier estimate of (-) 7.7 per cent.

China's economy grew by 6.5 per cent in October-December 2020, faster than the 4.9 per cent growth in July-September 2020.

Commenting on the growth numbers, the finance ministry in a statement said real GDP growth has "returned the economy to the pre-pandemic times of positive growth rates."

"It is also a reflection of a further strengthening of V-shaped recovery that began in Q2 of 2020-21 after a large GDP contraction in Q1 followed one of the most stringent lockdown imposed by government relative to other countries," it said.

Stating that the V-shaped recovery has been driven by rebounds in private consumption and investments, the ministry said the initial policy choice of "lives over livelihoods" succeeded by "lives as well as livelihoods" is now bearing positive results.

Agriculture, a bright spot through the pandemic, grew 3.9 per cent in October-December while manufacturing expanded 1.6 per cent as the economy reopened after a harsh lockdown.

Financial and real estate services grew 6.6 per cent but trade, hotels, transport and communication fell 7.7 per cent. Construction rose 6.2 per cent.

The positive growth ends the recession that the Indian economy had witnessed lately.

Arun Singh, Global Chief Economist, Dun &amp; Bradstreet, said the release of pent-up demand fuelled by the festive period might have added to the marginal positive growth in GDP in Q3 FY21.

"Most surprising is the contribution of government spending to the GDP during the third quarter which is a seven-quarter low, even as the government's stimulus package 3.0 was announced before the festive month," he said, adding that private consumption demand, although improved, remains weak.

However, there are risks to growth that arise from the fact that industrial production is yet to stabilise, core inflation remains stubbornly high, oil prices are rearing its head again and unemployment remains elevated.

Add to this is the risk of spurt in COVID-19 cases in some states and the likely disruptions to businesses and supply chain from the restrictions imposed to curb the possibility of a second wave.

"The measures taken by the government to contain the spread of the COVID-19 pandemic have had an impact on the economic activities as well as on the data collection mechanisms.

"The data challenges in the case of other underlying macro-economic indicators like IIP (industrial production) and CPI (retail inflation), used in the estimation of National Accounts aggregates and specific measures, if any, taken by the government in the following months with a view to addressing the pandemic led economic situation will have implications on the subsequent revision of these estimates," the NSO said.

Estimates are, therefore, likely to undergo sharp revisions for the aforesaid causes in due course, as per the release calendar. Users should take this into consideration when interpreting the figures, it added.

"With a growth re-emerging in both GDP and GVA in Q3 FY2021, the pandemic-induced technical recession in India has ended, in line with our expectations," Icra Principal Economist Aditi Nayar said.

Recouping of GDP to the positive territory is a promising sign as it portends the end of the pandemic-induced recessionary phase seen in the first half of the year, CII Director General Chandrajit Banerjee said.

The growth stimuli available from the Union Budget and the additional measures, including the PLI (Production Linked Incentives), will lead to a sturdy growth path over the recovery horizon, he added.

"The real push will come in the Q4 (January-March) 2021 because lockdowns on many sectors, particularly hospitality and travel eased substantially during this quarter.

"It is hoped that it remains that way, given the uptick in COVID-19 cases in some pockets and in some states. Important to note that the states coming under uptick constitute a large part of industrial activity, and that is important for Q4 and the next financial year," Deloitte India partner Sanjay Kumar said.

(With inputs from agencies)

The pandemic-induced technical recession in India has ended with growth in both GDP and the gross value added (GVA) in real terms in Q3 FY2021. The Gross Domestic Product (GDP) grew 0.

The pandemic-induced technical recession in India has ended with growth in both GDP and the gross value added (GVA) in real terms in Q3 FY2021. The Gross Domestic Product (GDP) grew 0.4 per cent in the October-December 2020 period compared with the same period a year back, data released by the National Statistics Office on Friday showed. This growth compares with revised contractions of 24.4 per cent in April-June 2020 and 7.3 per cent in July-September. GDP had expanded by 3.3 per cent in October-December 2019. While India has become one of the few major economies to post growth in the last quarter of 2020, the annual GDP estimate for the fiscal year ending March 31 has been revised to an 8 per cent contraction, deeper than an earlier estimate of (-) 7.7 per cent. China's economy grew by 6.5 per cent in October-December 2020, faster than the 4.9 per cent growth in July-September 2020. Commenting on the growth numbers, the finance ministry in a statement said real GDP growth has "returned the economy to the pre-pandemic times of positive growth rates." "It is also a reflection of a further strengthening of V-shaped recovery that began in Q2 of 2020-21 after a large GDP contraction in Q1 followed one of the most stringent lockdown imposed by government relative to other countries," it said. Stating that the V-shaped recovery has been driven by rebounds in private consumption and investments, the ministry said the initial policy choice of "lives over livelihoods" succeeded by "lives as well as livelihoods" is now bearing positive results. Agriculture, a bright spot through the pandemic, grew 3.9 per cent in October-December while manufacturing expanded 1.6 per cent as the economy reopened after a harsh lockdown. Financial and real estate services grew 6.6 per cent but trade, hotels, transport and communication fell 7.7 per cent. Construction rose 6.2 per cent. The positive growth ends the recession that the Indian economy had witnessed lately. Arun Singh, Global Chief Economist, Dun & Bradstreet, said the release of pent-up demand fuelled by the festive period might have added to the marginal positive growth in GDP in Q3 FY21. "Most surprising is the contribution of government spending to the GDP during the third quarter which is a seven-quarter low, even as the government's stimulus package 3.0 was announced before the festive month," he said, adding that private consumption demand, although improved, remains weak. However, there are risks to growth that arise from the fact that industrial production is yet to stabilise, core inflation remains stubbornly high, oil prices are rearing its head again and unemployment remains elevated. Add to this is the risk of spurt in COVID-19 cases in some states and the likely disruptions to businesses and supply chain from the restrictions imposed to curb the possibility of a second wave. "The measures taken by the government to contain the spread of the COVID-19 pandemic have had an impact on the economic activities as well as on the data collection mechanisms. "The data challenges in the case of other underlying macro-economic indicators like IIP (industrial production) and CPI (retail inflation), used in the estimation of National Accounts aggregates and specific measures, if any, taken by the government in the following months with a view to addressing the pandemic led economic situation will have implications on the subsequent revision of these estimates," the NSO said. Estimates are, therefore, likely to undergo sharp revisions for the aforesaid causes in due course, as per the release calendar. Users should take this into consideration when interpreting the figures, it added. "With a growth re-emerging in both GDP and GVA in Q3 FY2021, the pandemic-induced technical recession in India has ended, in line with our expectations," Icra Principal Economist Aditi Nayar said. Recouping of GDP to the positive territory is a promising sign as it portends the end of the pandemic-induced recessionary phase seen in the first half of the year, CII Director General Chandrajit Banerjee said. The growth stimuli available from the Union Budget and the additional measures, including the PLI (Production Linked Incentives), will lead to a sturdy growth path over the recovery horizon, he added. "The real push will come in the Q4 (January-March) 2021 because lockdowns on many sectors, particularly hospitality and travel eased substantially during this quarter. "It is hoped that it remains that way, given the uptick in COVID-19 cases in some pockets and in some states. Important to note that the states coming under uptick constitute a large part of industrial activity, and that is important for Q4 and the next financial year," Deloitte India partner Sanjay Kumar said. (With inputs from agencies)

Covid-driven recession over, India economy returns to growth in December quarter

According to the government, the Indian <a href="https://www.wionews.com/india-news/coronavirus-impact-imf-projects-indias-gdp-to-contract-103-in-2020-334996">economy</a> contracted 7.5 per cent in the July-September quarter which is the most among major economies as the coronavirus pandemic continues to ravage jobs and growth worldwide.

<a href="https://www.wionews.com/india-news/coronavirus-in-india-total-caseload-jumps-to-93-million-death-toll-stands-at-135715-345714">Also Read:&nbsp;Coronavirus in India: Total caseload jumps to 9.3 million</a>

The economy contracted 23.9 per cent in the April to June quarter when the lockdown was underway due to the coronavirus pandemic.

India's coronavirus infection has risen&nbsp;to 9.27 million even as economy activity picked in the July-September period although some states have re-imposed curbs this week to fight a second wave of infections.

The two successive quarters of contraction mean India has now entered a recession as hospitality and construction experienced downward trends.

According to the government, the Indian economy contracted 7.5 per cent in the July-September quarter which is the most among major economies as the coronavirus pandemic continues to ravage jobs and growth worldwide.

According to the government, the Indian economy contracted 7.5 per cent in the July-September quarter which is the most among major economies as the coronavirus pandemic continues to ravage jobs and growth worldwide. Also Read: Coronavirus in India: Total caseload jumps to 9.3 million The economy contracted 23.9 per cent in the April to June quarter when the lockdown was underway due to the coronavirus pandemic. India's coronavirus infection has risen to 9.27 million even as economy activity picked in the July-September period although some states have re-imposed curbs this week to fight a second wave of infections. The two successive quarters of contraction mean India has now entered a recession as hospitality and construction experienced downward trends.

Pandemic effect: India's GDP contracts 7.5% in July-September quarter; shrinks 23.9% in April-June

According to a poll, business sentiment of Japanese manufacturers and service-sector firms was the least pessimistic in nine months in November, as the world’s third-largest economy showed signs of pulling out of a coronavirus-induced recession.

World Business Watch: Japan manufacturers less pessimistic in November

Coronavirus pandemic has pushed several economies into a deep recession. The outbreak has had a big impact on the economic, social, and political fronts in many parts of the world. In Myanmar, the virus has dragged the poor families to an edge. Watch report.

Myanmar's coronavirus crisis: Virus drags poor families to the edge

An estimation by Poland's statistics office on Friday showed that the country is experiencing recession since the end of the communist era that happened three decades ago.

An estimation by Poland's statistics office on Friday showed that the country is experiencing recession since the end of the communist era that happened three decades ago. Due to the coronavirus lockdown, the country's economy shrank by 8.9 per cent in the second quarter. The economy witnessed a contraction of 0.4 per cent in the first quarter. Recession is defined two consecutive quarters of contraction. During the global financial crisis of 2008 and 2009, Poland was the only European Union member state enjoyed a healthy growth rate and avoided recession. Also read: Two patients in China test positive months after coronavirus recovery Country's GDP grew by 4.1 per cent in 2019, which was slightly lower than that of 2018 (5.3 per cent). According to the Polish Economic Institute, an independent research centre, country's economy "should recover". The Polish government has forecasted 3.4 per cent contraction this year, down from a previous prognosis of 3.7 per cent growth. The European Commission forecast in May that the Polish economy would shrink by 4.3 per cent overall in 2020 and bounce back with 4.1 per cent expansion in 2021. (Inputs from AFP)

Virus-hit Poland in first recession since communist era: Official data

&nbsp;IndiGo on Monday said it is implementing "deeper" pay cuts of up to 35 per cent for its senior employees in order to reduce its cash outflow amid the coronavirus pandemic.

From May onwards, IndiGo had implemented pay cuts of up to 25 per cent for its senior employees.

The "deeper" pay cuts came after the airline's announcement on July 20 that it would lay off 10 per cent of its workforce due to the economic crisis caused by the pandemic.

In an e-mail on Monday, IndiGo CEO Ronojoy Dutta told employees, "I will increase my personal pay cut percentage to 35 per cent. I am asking all senior vice presidents and above to take a 30 per cent pay cut, all pilots will see their pay cut percentages increased to 28 per cent, all vice presidents will take a 25 per cent pay cut and associate vice presidents will take a 15 per cent pay cut."

These increased pay cuts will come into effect from September 1, he added.

The aviation sector has been significantly impacted due to the travel restrictions imposed in India and other countries in view of the coronavirus pandemic. All airlines in India have taken cost-cutting measures such as pay cuts, leave-without-pay and lay-offs in order to conserve cash.

Before Monday's announcement, IndiGo CEO Dutta took a 25 per cent cut in salaries. For senior vice presidents the pay cut was 20 per cent, for vice presidents it was 15 per cent and for associate vice presidents it was 10 per cent.

In May, IndiGo had also cut the salaries of Band D employees and cabin crew members by 10 per cent, and of Band C employees by 5 per cent.

Salaries of employees in Band B and Band A were not touched. Majority of the employees of the airline are in Band B and Band A.

Dutta's Monday announcement does not affect the cuts instituted in the salaries of Band D employees, Band C employees and cabin crew members in May. Moreover, no cuts were announced on Monday for Band B and Band A employees.

IndiGo in May had also implemented a compulsory leave without pay (LWP) scheme for its employees for up to five days per month. In August it was increased to 10.5 days per month.

Dutta said on Monday, "We are not making any changes for August LWP and from September each department will decide on the LWP for each month based on workloads and staffing levels."

"You can expect a direct communication from your department head on LWP each month. It is my earnest hope that the environment is conducive enough for us to add capacity back quickly and reduce LWP to zero," he added.

India resumed domestic passenger flights from May 25 after a gap of two months due to the coronavirus pandemic.

However, the airlines have been allowed to operate only a maximum of 45 per cent of their pre-COVID domestic flights.

Occupancy rate in Indian domestic flights has been around just 50-60 per cent since May 25. Scheduled international passenger flights continue to remain suspended in India since March 23.&nbsp;

IndiGo on Monday said it is implementing "deeper" pay cuts of up to 35 per cent for its senior employees in order to reduce its cash outflow amid the coronavirus pandemic.

IndiGo on Monday said it is implementing "deeper" pay cuts of up to 35 per cent for its senior employees in order to reduce its cash outflow amid the coronavirus pandemic. From May onwards, IndiGo had implemented pay cuts of up to 25 per cent for its senior employees. The "deeper" pay cuts came after the airline's announcement on July 20 that it would lay off 10 per cent of its workforce due to the economic crisis caused by the pandemic. In an e-mail on Monday, IndiGo CEO Ronojoy Dutta told employees, "I will increase my personal pay cut percentage to 35 per cent. I am asking all senior vice presidents and above to take a 30 per cent pay cut, all pilots will see their pay cut percentages increased to 28 per cent, all vice presidents will take a 25 per cent pay cut and associate vice presidents will take a 15 per cent pay cut." These increased pay cuts will come into effect from September 1, he added. The aviation sector has been significantly impacted due to the travel restrictions imposed in India and other countries in view of the coronavirus pandemic. All airlines in India have taken cost-cutting measures such as pay cuts, leave-without-pay and lay-offs in order to conserve cash. Before Monday's announcement, IndiGo CEO Dutta took a 25 per cent cut in salaries. For senior vice presidents the pay cut was 20 per cent, for vice presidents it was 15 per cent and for associate vice presidents it was 10 per cent. In May, IndiGo had also cut the salaries of Band D employees and cabin crew members by 10 per cent, and of Band C employees by 5 per cent. Salaries of employees in Band B and Band A were not touched. Majority of the employees of the airline are in Band B and Band A. Dutta's Monday announcement does not affect the cuts instituted in the salaries of Band D employees, Band C employees and cabin crew members in May. Moreover, no cuts were announced on Monday for Band B and Band A employees. IndiGo in May had also implemented a compulsory leave without pay (LWP) scheme for its employees for up to five days per month. In August it was increased to 10.5 days per month. Dutta said on Monday, "We are not making any changes for August LWP and from September each department will decide on the LWP for each month based on workloads and staffing levels." "You can expect a direct communication from your department head on LWP each month. It is my earnest hope that the environment is conducive enough for us to add capacity back quickly and reduce LWP to zero," he added. India resumed domestic passenger flights from May 25 after a gap of two months due to the coronavirus pandemic. However, the airlines have been allowed to operate only a maximum of 45 per cent of their pre-COVID domestic flights. Occupancy rate in Indian domestic flights has been around just 50-60 per cent since May 25. Scheduled international passenger flights continue to remain suspended in India since March 23.

IndiGo announces 'deeper' pay cuts of up to 35 per cent for senior employees

Reports say Asia's second-largest economy Japan is set to declare recession after 71 straight months of growth. Watch this video to know more.

Video: Japan set to declare recession after 71 straight months of growth

Bad loans in the Indian banking system could soar to almost 15% of total loans by March 2021 as the coronavirus crisis leads to rising levels of household and corporate debt, the Financial Stability and Development Council said in a report published on Friday.

Indian banks have been battling rising bad loans for years but managed to get gross non-performing assets (NPAs) down to 8.5% in March, compared to 9.3% in September 2019, following strict new rules imposed by the central bank.

As India`s economy feels the impact of the COVID-19 pandemic, macro stress tests indicate that the gross NPA ratio of all banks could increase to 12.5% by next March under a baseline scenario and may escalate to 14.7% under a very severely stressed scenario, the report said. It did not give details of that scenario.

<a href="https://www.wionews.com/india-news/coffee-day-owed-472-million-by-deceased-founders-firm-report-315761">Also read|&nbsp;Coffee Day owed $472 million by deceased founder's firm: report</a>

"The pandemic has the potential to amplify financial vulnerabilities, including corporate and household debt burdens in the case of severe economic contraction," the report said.

The semi-annual report is compiled by the Financial Stability and Development Council - an umbrella group of regulators - and released by the Reserve Bank of India.

Financial sector risks

The report highlighted that relief measures for borrowers introduced as part of measures to help India`s economy through the pandemic, such as deferments of loan and interest payments for six months, may have implications for the financial health of banks, going forward.

"Nearly half of the customers accounting for around half of outstanding bank loans opted to avail the benefit of the relief measures," it stated.

The report also highlighted the problems for over 9,500 shadow banks, known as non-banking financial companies (NBFCs), in India, which have been battling a liquidity crisis over the last couple of years.

"The declining share of market funding for NBFCs is a concern as it has the potential to accentuate liquidity risk for NBFCs as well as for the financial system," the report stated.

However, the report said contagion risks through financial networks have moderated due to the higher capital buffers introduced in recent years and a shrinking interbank market.

Bad loans in the Indian banking system could soar to almost 15% of total loans by March 2021 as the coronavirus crisis leads to rising levels of household and corporate debt, the Financial Stability and Development Council said in a report published on Friday.

Bad loans in the Indian banking system could soar to almost 15% of total loans by March 2021 as the coronavirus crisis leads to rising levels of household and corporate debt, the Financial Stability and Development Council said in a report published on Friday. Indian banks have been battling rising bad loans for years but managed to get gross non-performing assets (NPAs) down to 8.5% in March, compared to 9.3% in September 2019, following strict new rules imposed by the central bank. As India`s economy feels the impact of the COVID-19 pandemic, macro stress tests indicate that the gross NPA ratio of all banks could increase to 12.5% by next March under a baseline scenario and may escalate to 14.7% under a very severely stressed scenario, the report said. It did not give details of that scenario. Also read| Coffee Day owed $472 million by deceased founder's firm: report "The pandemic has the potential to amplify financial vulnerabilities, including corporate and household debt burdens in the case of severe economic contraction," the report said. The semi-annual report is compiled by the Financial Stability and Development Council - an umbrella group of regulators - and released by the Reserve Bank of India. Financial sector risks The report highlighted that relief measures for borrowers introduced as part of measures to help India`s economy through the pandemic, such as deferments of loan and interest payments for six months, may have implications for the financial health of banks, going forward. "Nearly half of the customers accounting for around half of outstanding bank loans opted to avail the benefit of the relief measures," it stated. The report also highlighted the problems for over 9,500 shadow banks, known as non-banking financial companies (NBFCs), in India, which have been battling a liquidity crisis over the last couple of years. "The declining share of market funding for NBFCs is a concern as it has the potential to accentuate liquidity risk for NBFCs as well as for the financial system," the report stated. However, the report said contagion risks through financial networks have moderated due to the higher capital buffers introduced in recent years and a shrinking interbank market.

Indian banks' bad debt ratio could hit nearly 15% by March in worst-case scenario: Report

Hit by the COVID-19 economic slowdown of another developed economy South Korea has joined Japan, Thailand, and Singapore in a technical recession. Watch report.

Recession in South Korea: Exports plunge the most since 1963

The South Korean economy plunged into recession in the second quarter in its worst decline in more than two decades as the coronavirus pandemic battered exports and social distancing curbs paralyzed factory output.

Asia's fourth-largest economy shrank by a seasonally adjusted 3.3% in the June quarter from three months earlier, the Bank of Korea said on Thursday. That is the sharpest contraction since the first quarter of 1998 and steeper than a 2.3% contraction seen in a Reuters poll.

That took the year-on-year contraction in gross domestic product to 2.9%, the worst since the fourth quarter of 1998 and also underperforming a 2.0% decline seen in the poll.

Exports, which account for nearly 40% of the economy, were the biggest drag on growth, dropping by 16.6% on-quarter to mark the worst reading since 1963.

Construction investment fell 1.3% quarter-on-quarter, while capital investment declined 2.9%.

Output from manufacturing and service sector fell by 9.0%, and 1.1%, respectively.

One saving grace has been a 1.4% gain in private consumption from three months earlier, thanks to government cash handouts that boosted spending on restaurants, clothes and leisure activities.

Finance Minister Hong Nam-ki said the economy is likely to rebound from the third quarter.

"It's possible for us to see China-style rebound in the third quarter as the pandemic slows and activity in overseas production, schools and hospitals resume," Hong said at a policy meeting on Thursday.

The government has rolled out about 277 trillion won ($231 billion) worth of stimulus to fight the economic fallout from the pandemic so far. However, policymakers have little control over the global demand for the country's exports, which includes everything from memory chips to cars to petrochemical products.

"The worst seems to be over. The base effect and (fiscal injection) from supplementary budget will improve investment," said Park Sang-hyun, an analyst at HI Investment &amp; Securities.

For the whole of 2020, analysts see the economy declining by a median 0.4%, which would be the first and largest contraction since 1998. But the International Monetary Fund estimates an even bigger 2.1% contraction.

Last week, the BOK's governor said a downward revision from its previous projection of a 0.2% decline for 2020 was inevitable.

The South Korean economy plunged into recession in the second quarter in its worst decline in more than two decades as the coronavirus pandemic battered exports and social distancing curbs paralyzed factory output.

The South Korean economy plunged into recession in the second quarter in its worst decline in more than two decades as the coronavirus pandemic battered exports and social distancing curbs paralyzed factory output. Asia's fourth-largest economy shrank by a seasonally adjusted 3.3% in the June quarter from three months earlier, the Bank of Korea said on Thursday. That is the sharpest contraction since the first quarter of 1998 and steeper than a 2.3% contraction seen in a Reuters poll. That took the year-on-year contraction in gross domestic product to 2.9%, the worst since the fourth quarter of 1998 and also underperforming a 2.0% decline seen in the poll. Exports, which account for nearly 40% of the economy, were the biggest drag on growth, dropping by 16.6% on-quarter to mark the worst reading since 1963. Construction investment fell 1.3% quarter-on-quarter, while capital investment declined 2.9%. Output from manufacturing and service sector fell by 9.0%, and 1.1%, respectively. One saving grace has been a 1.4% gain in private consumption from three months earlier, thanks to government cash handouts that boosted spending on restaurants, clothes and leisure activities. Finance Minister Hong Nam-ki said the economy is likely to rebound from the third quarter. "It's possible for us to see China-style rebound in the third quarter as the pandemic slows and activity in overseas production, schools and hospitals resume," Hong said at a policy meeting on Thursday. The government has rolled out about 277 trillion won ($231 billion) worth of stimulus to fight the economic fallout from the pandemic so far. However, policymakers have little control over the global demand for the country's exports, which includes everything from memory chips to cars to petrochemical products. "The worst seems to be over. The base effect and (fiscal injection) from supplementary budget will improve investment," said Park Sang-hyun, an analyst at HI Investment & Securities. For the whole of 2020, analysts see the economy declining by a median 0.4%, which would be the first and largest contraction since 1998. But the International Monetary Fund estimates an even bigger 2.1% contraction. Last week, the BOK's governor said a downward revision from its previous projection of a 0.2% decline for 2020 was inevitable.

South Korea enters recession as exports plunge by most since 1963

The coronavirus pandemic has hit Singapore’s economy and the country has entered a technical recession after shrinking by 41.2% in the second quarter compared to the previous quarter. Watch report

Coronavirus pandemic hits Singapore: Economy slips into recession

Many people have lost their jobs due to coronavirus pandemic. Australia's unemployment rate has jumped to its highest level in nearly about 2 decades. Watch report.

Australia jobless rate at 19-yr high: First recession likely in nearly 30 yrs

For the first time in 68 years, Pakistan's economy is set to contract in the outgoing fiscal year with a negative 0.38 per cent due to the adverse impact of the coronavirus pandemic coupled with the already weak financial situation before the pandemic hit the country, according to the economic survey unveiled on Thursday.

Advisor on Finance Abdul Hafeez Sheikh, releasing the Pakistan Economic Survey 2019-20 said the economy suffered massively due to the coronavirus pandemic which has so far infected about 120,000 people in the country, and forced the government to impose lockdown in March for several weeks.

The pandemic has badly hit the economy in the current fiscal year ending on June 30.

<a href="https://www.wionews.com/india-news/our-stimulus-package-is-as-large-as-gdp-of-pakistan-india-tells-imran-khan-after-he-offers-help-305154">Also read|&nbsp;Our stimulus package is as large as GDP of Pakistan: India tells Imran Khan after he offers 'help'</a>

For the first time in 68 years, Pakistan's economy has marginally contracted by 0.38 per cent in the outgoing fiscal year due to adverse impacts of novel coronavirus coupled with economic stabilisation policies that had hit the industrial sector much before the deadly pandemic.

Except for the agriculture sector that grew 2.7 per cent, the industrial and services sectors witnessed negative growth rates, pulling the overall growth rate down to negative 0.38 per cent in the fiscal year 2019-20, ending on June 30, the economic survey said.

The per capita income in dollar terms has also dipped to 1,366 - a contraction of 6.1 per cent, but it increased in rupee terms to Rs 214,539.

<a href="https://www.wionews.com/south-asia/cash-strapped-pakistan-wants-to-help-india-imran-offers-to-share-the-cash-transfer-programme-305114">Also read:&nbsp;Cash-strapped Pakistan wants to 'help' India, Imran offers to 'share the cash transfer programme'</a>

Sheikh said the International Monetary Fund (IMF) had warned about the dire impact of COVID-19 on the developing countries due to drop in exports and remittance.

"Exports fell due to a fall in global demand while remittance decreased due to layoffs of Pakistanis employed abroad," he said.

The overall tax collection grew by 10.8 per cent to Rs 3,300.6 billion during July-April 2020 against Rs 2,980 billion in the comparable period last year. The tax collection estimate for this period was Rs 4,510 billion.

He said the current account deficit was reduced by 73.1 per cent to USD 2.8 billion (1.1 per cent of GDP) against USD 10.3 billion last year which was 3.7 per cent of GDP.

"The current account deficit that we inherited was around USD 20 billion but we have reduced that to around USD 3 billion. This is a huge achievement of the government," he said.

He said the government controlled state expenses and did not borrow from the State Bank of Pakistan during the outgoing fiscal year.

"This was the first time, I think, in the country's history, and our primary balance -- meaning our expenses were less than our earnings --&nbsp;went into surplus," he said.

He said Rs 3,000 billion were set aside for payment of loans in the coming year while Rs 5,000 billion were given in the outgoing year. He promised more relief in the new budget and also reduced taxes and not imposed any new tax so that industry should be given relief and incentive to grow.

Minister for Economic Affairs Khusru Bakhtiar said that this government had USD 9 billion forex exchange reserve when it came to power in August 2018 and by the end of this year it would be more than USD 18 billion.

He said that the total external debt of Pakistan was USD 76.5 billion which was negatively impacting Pakistan.

He said the debt was USD 40 billion in 2013 and rose to USD 48 billion by 2013 during the tenure of Pakistan Peoples Party and again increased to USD 73 billion by 2018 in the five years of Pakistan Muslim League-Nawaz.

The economic survey is considered as the most authentic document of the government and is launched every year before the announcement of the budget of the next year.

The government has already announced that the budget for 2020-21 will be presented in parliament on June 12.

For the first time in 68 years, Pakistan's economy is set to contract in the outgoing fiscal year with a negative 0.38 per cent due to the adverse impact of the coronavirus pandemic coupled with the already weak financial situation before the pandemic hit the country, according to the economic survey unveiled on Thursday.

For the first time in 68 years, Pakistan's economy is set to contract in the outgoing fiscal year with a negative 0.38 per cent due to the adverse impact of the coronavirus pandemic coupled with the already weak financial situation before the pandemic hit the country, according to the economic survey unveiled on Thursday. Advisor on Finance Abdul Hafeez Sheikh, releasing the Pakistan Economic Survey 2019-20 said the economy suffered massively due to the coronavirus pandemic which has so far infected about 120,000 people in the country, and forced the government to impose lockdown in March for several weeks. The pandemic has badly hit the economy in the current fiscal year ending on June 30. Also read| Our stimulus package is as large as GDP of Pakistan: India tells Imran Khan after he offers 'help' For the first time in 68 years, Pakistan's economy has marginally contracted by 0.38 per cent in the outgoing fiscal year due to adverse impacts of novel coronavirus coupled with economic stabilisation policies that had hit the industrial sector much before the deadly pandemic. Except for the agriculture sector that grew 2.7 per cent, the industrial and services sectors witnessed negative growth rates, pulling the overall growth rate down to negative 0.38 per cent in the fiscal year 2019-20, ending on June 30, the economic survey said. The per capita income in dollar terms has also dipped to 1,366 - a contraction of 6.1 per cent, but it increased in rupee terms to Rs 214,539. Also read: Cash-strapped Pakistan wants to 'help' India, Imran offers to 'share the cash transfer programme' Sheikh said the International Monetary Fund (IMF) had warned about the dire impact of COVID-19 on the developing countries due to drop in exports and remittance. "Exports fell due to a fall in global demand while remittance decreased due to layoffs of Pakistanis employed abroad," he said. The overall tax collection grew by 10.8 per cent to Rs 3,300.6 billion during July-April 2020 against Rs 2,980 billion in the comparable period last year. The tax collection estimate for this period was Rs 4,510 billion. He said the current account deficit was reduced by 73.1 per cent to USD 2.8 billion (1.1 per cent of GDP) against USD 10.3 billion last year which was 3.7 per cent of GDP. "The current account deficit that we inherited was around USD 20 billion but we have reduced that to around USD 3 billion. This is a huge achievement of the government," he said. He said the government controlled state expenses and did not borrow from the State Bank of Pakistan during the outgoing fiscal year. "This was the first time, I think, in the country's history, and our primary balance -- meaning our expenses were less than our earnings -- went into surplus," he said. He said Rs 3,000 billion were set aside for payment of loans in the coming year while Rs 5,000 billion were given in the outgoing year. He promised more relief in the new budget and also reduced taxes and not imposed any new tax so that industry should be given relief and incentive to grow. Minister for Economic Affairs Khusru Bakhtiar said that this government had USD 9 billion forex exchange reserve when it came to power in August 2018 and by the end of this year it would be more than USD 18 billion. He said that the total external debt of Pakistan was USD 76.5 billion which was negatively impacting Pakistan. He said the debt was USD 40 billion in 2013 and rose to USD 48 billion by 2013 during the tenure of Pakistan Peoples Party and again increased to USD 73 billion by 2018 in the five years of Pakistan Muslim League-Nawaz. The economic survey is considered as the most authentic document of the government and is launched every year before the announcement of the budget of the next year. The government has already announced that the budget for 2020-21 will be presented in parliament on June 12.

Pakistan's economy contracts for first time in 68 years by -0.38 pc

US consumer prices fell for a third straight month in May and underlying inflation was weak as demand for goods and services remained subdued amid a recession caused by the COVID-19 pandemic.

But with nonessential businesses reopening after shuttering in mid-March to slow the spread of COVID-19, deflation, a decline in the general price level, is unlikely. Still, the report from the Labor Department on Wednesday suggested the disinflationary trend could persist for a while.

That together with a struggling labor market supports the Federal Reserve`s commitment to maintain its very accommodative monetary policy stance for some time while nursing the economy back to health. The US central bank said on Wednesday COVID-19 "will weigh heavily on economic activity, employment, and inflation in the near term."

<a href="https://www.wionews.com/business-economy/indias-economy-to-contract-by-32-in-2020-21-world-bank-304352">Also read:&nbsp;India's economy to contract by 3.2% in 2020-21: World Bank</a>

"We expect the crisis to result in a sustained slowing in inflation due to a net increase in slack," said Jim O`Sullivan, chief US macro strategist at TD Securities in New York.

The Labor Department said its consumer price index dipped 0.1% last month after plunging 0.8% in April, which was the largest decline since December 2008. Prices were held down by a 3.5% drop in the cost of gasoline, which followed a 20.6% plunge in April. That offset a 0.7% increase in the cost of food last month. Food prices jumped 1.5% in April.

Prices for food consumed at home rose 1.0% after surging 2.6% in April. The cost of beef shot up a record 10.8% in May, reflecting shortages as a result of COVID-19 infections at meat processing plants. Expensive food has led consumers to anticipate higher inflation this year.

<a href="https://www.wionews.com/world/japans-economy-minister-warns-against-deepening-negative-rates-304121">Also read:&nbsp;Japan's economy minister warns against deepening negative rates</a>

Consumers also paid more for dairy products, fruits and vegetables. But cereals and bakery products were cheaper last month. In the 12 months through May, the CPI edged up 0.1%. That was the smallest year-on-year rise since September 2015 and followed a 0.3% increase in April.

Economists polled by Reuters had forecast the CPI would be unchanged in May and gain 0.2% year-on-year. 
The National Bureau of Economic Research, the arbiter of US recessions, declared on Monday that the economy slipped into recession in February.

The Labor Department said in-store data collection had remained suspended since March 16 because of risks of exposure to COVID-19. The department added that data collection last month was also impacted "by the temporary closing or limited operations of certain types of establishments," leading to "an increase in the number of prices being considered temporarily unavailable and imputed."

Stocks on Wall Street were mixed in choppy trading. The dollar fell against a basket of currencies. US Treasury prices rose.

Rents increase

Excluding the volatile food and energy components, the CPI slipped 0.1% in May after decreasing 0.4% in April, the largest drop since the series started in 1957. The so-called core CPI fell in March for the first time since January 2010.

May marked the first time that the core CPI has dropped for three consecutive months. Underlying inflation was depressed by continued decreases in the costs of motor vehicle insurance and apparel. Airline fares fell 4.9% and used cars and trucks prices dropped 0.4%.

The cost of hotel and motel accommodation dropped 1.8% last month after record 8.1% plunge in April.

Those price declines offset a 0.3% increase in owners` equivalent rent of primary residence, which is what a homeowner would pay to rent or receive from renting a home. This rent measure gained 0.2% in April, likely reflecting forbearance agreements between landlords and tenants who have lost their jobs or have had their hours cut because of the global pandemic.

The economy has shed nearly 20 million jobs since March.

Healthcare costs increased 0.5% in May after a solid 0.4% rise in April. Consumers paid more for household furnishings, new vehicles, alcoholic beverages and education.

In the 12 months through May, the core CPI rose 1.2%, the smallest gain since March 2011. The core CPI increased 1.4% year-on-year in April.

The Fed tracks the core personal consumption expenditures (PCE) price index for its 2% inflation target. The core PCE price index increased 1.0% on a year-on-year basis in April, the smallest advance since December 2010. May`s core PCE price index data will be released at the end of the month.

The Fed projected core inflation rising 1.0% this year and picking up to 1.5% in 2021. Back in December, it forecast inflation at 1.9% this year and 2% in 2021.

"The weakness in the economy should keep downward pressure on inflation over time and we expect softness in the core measures to be reported for upcoming months," said Daniel Silver, an economist at JPMorgan in New York.

"But we think that we probably have moved past the largest sequential monthly declines in inflation that came shortly after the virus spread."

US consumer prices fell for a third straight month in May and underlying inflation was weak as demand for goods and services remained subdued amid a recession caused by the COVID-19 pandemic.

US consumer prices fell for a third straight month in May and underlying inflation was weak as demand for goods and services remained subdued amid a recession caused by the COVID-19 pandemic. But with nonessential businesses reopening after shuttering in mid-March to slow the spread of COVID-19, deflation, a decline in the general price level, is unlikely. Still, the report from the Labor Department on Wednesday suggested the disinflationary trend could persist for a while. That together with a struggling labor market supports the Federal Reserve`s commitment to maintain its very accommodative monetary policy stance for some time while nursing the economy back to health. The US central bank said on Wednesday COVID-19 "will weigh heavily on economic activity, employment, and inflation in the near term." Also read: India's economy to contract by 3.2% in 2020-21: World Bank "We expect the crisis to result in a sustained slowing in inflation due to a net increase in slack," said Jim O`Sullivan, chief US macro strategist at TD Securities in New York. The Labor Department said its consumer price index dipped 0.1% last month after plunging 0.8% in April, which was the largest decline since December 2008. Prices were held down by a 3.5% drop in the cost of gasoline, which followed a 20.6% plunge in April. That offset a 0.7% increase in the cost of food last month. Food prices jumped 1.5% in April. Prices for food consumed at home rose 1.0% after surging 2.6% in April. The cost of beef shot up a record 10.8% in May, reflecting shortages as a result of COVID-19 infections at meat processing plants. Expensive food has led consumers to anticipate higher inflation this year. Also read: Japan's economy minister warns against deepening negative rates Consumers also paid more for dairy products, fruits and vegetables. But cereals and bakery products were cheaper last month. In the 12 months through May, the CPI edged up 0.1%. That was the smallest year-on-year rise since September 2015 and followed a 0.3% increase in April. Economists polled by Reuters had forecast the CPI would be unchanged in May and gain 0.2% year-on-year. The National Bureau of Economic Research, the arbiter of US recessions, declared on Monday that the economy slipped into recession in February. The Labor Department said in-store data collection had remained suspended since March 16 because of risks of exposure to COVID-19. The department added that data collection last month was also impacted "by the temporary closing or limited operations of certain types of establishments," leading to "an increase in the number of prices being considered temporarily unavailable and imputed." Stocks on Wall Street were mixed in choppy trading. The dollar fell against a basket of currencies. US Treasury prices rose. Rents increase Excluding the volatile food and energy components, the CPI slipped 0.1% in May after decreasing 0.4% in April, the largest drop since the series started in 1957. The so-called core CPI fell in March for the first time since January 2010. May marked the first time that the core CPI has dropped for three consecutive months. Underlying inflation was depressed by continued decreases in the costs of motor vehicle insurance and apparel. Airline fares fell 4.9% and used cars and trucks prices dropped 0.4%. The cost of hotel and motel accommodation dropped 1.8% last month after record 8.1% plunge in April. Those price declines offset a 0.3% increase in owners` equivalent rent of primary residence, which is what a homeowner would pay to rent or receive from renting a home. This rent measure gained 0.2% in April, likely reflecting forbearance agreements between landlords and tenants who have lost their jobs or have had their hours cut because of the global pandemic. The economy has shed nearly 20 million jobs since March. Healthcare costs increased 0.5% in May after a solid 0.4% rise in April. Consumers paid more for household furnishings, new vehicles, alcoholic beverages and education. In the 12 months through May, the core CPI rose 1.2%, the smallest gain since March 2011. The core CPI increased 1.4% year-on-year in April. The Fed tracks the core personal consumption expenditures (PCE) price index for its 2% inflation target. The core PCE price index increased 1.0% on a year-on-year basis in April, the smallest advance since December 2010. May`s core PCE price index data will be released at the end of the month. The Fed projected core inflation rising 1.0% this year and picking up to 1.5% in 2021. Back in December, it forecast inflation at 1.9% this year and 2% in 2021. "The weakness in the economy should keep downward pressure on inflation over time and we expect softness in the core measures to be reported for upcoming months," said Daniel Silver, an economist at JPMorgan in New York. "But we think that we probably have moved past the largest sequential monthly declines in inflation that came shortly after the virus spread."

US inflation subdued with economy in recession

The outlook for Britain's coronavirus-blighted labour market is at its bleakest for almost 30 years despite the easing lockdown, a survey showed Tuesday. 
 
Employment consultancy ManpowerGroup revealed the outcome of a survey of 1,056 UK employers, which comes as Britain continues to relax its COVID-19 lockdown. 
 
"Hiring intentions for the third quarter of 2020 are down to minus 12 percent, with a sharp drop across all major sectors," ManpowerGroup said in a statement, noting this was the worst level since it began the survey in 1992.

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The so-called net employment outlook is calculated by subtracting the number of employers who want to cut staff from those wanting to hire staff. 
 
On a more optimistic note, ManpowerGroup added that most UK businesses expected to return to normality over the next twelve months. 
 
"Employers remain cautiously optimistic that this will be temporary with ... 57 percent of employers expecting to return to pre-COVID-19 hiring levels by this time next year." 
 
Mark Cahill, managing director of ManpowerGroup UK, noted the data showed "unprecedented" disruption from the disease, which has killed more than 40,000 in Britain. 
 
"While there's no getting away from the challenges that lie ahead, the data underlines the resilience of UK employers," Cahill said.

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He added: "The level of disruption is unprecedented and many will be looking closely at what happens next with how COVID-19 progresses, how consumers respond and what all this means for their own operations.” 
 
Recent official UK data also painted a dire picture of the current state of the labour market. 
 
The number of Britons claiming jobless benefit soared nearly 70 percent in April to 2.1 million. 
 
Unemployment claims surged by a record 856,000 from March, according to the Office for National Statistics.&nbsp; 
 
Britain imposed a lockdown on March 23 to halt the spread of the virus, and launched a furlough jobs retention scheme under which the state temporarily pays the bulk of wages.

The outlook for Britain's coronavirus-blighted labour market is at its bleakest for almost 30 years despite the easing lockdown, a survey showed Tuesday. Employment consultancy ManpowerGroup revealed the outcome of a survey of 1,056 UK employers, which comes as Britain continues to relax its COVID-19 lockdown.

The outlook for Britain's coronavirus-blighted labour market is at its bleakest for almost 30 years despite the easing lockdown, a survey showed Tuesday. Employment consultancy ManpowerGroup revealed the outcome of a survey of 1,056 UK employers, which comes as Britain continues to relax its COVID-19 lockdown. "Hiring intentions for the third quarter of 2020 are down to minus 12 percent, with a sharp drop across all major sectors," ManpowerGroup said in a statement, noting this was the worst level since it began the survey in 1992. Also read: Emergency health measures including school closures saved millions in six coronavirus-hit countries: Study The so-called net employment outlook is calculated by subtracting the number of employers who want to cut staff from those wanting to hire staff. On a more optimistic note, ManpowerGroup added that most UK businesses expected to return to normality over the next twelve months. "Employers remain cautiously optimistic that this will be temporary with ... 57 percent of employers expecting to return to pre-COVID-19 hiring levels by this time next year." Mark Cahill, managing director of ManpowerGroup UK, noted the data showed "unprecedented" disruption from the disease, which has killed more than 40,000 in Britain. "While there's no getting away from the challenges that lie ahead, the data underlines the resilience of UK employers," Cahill said. Also read: Was 'icon of the free world' Winston Churchill a racist? He added: "The level of disruption is unprecedented and many will be looking closely at what happens next with how COVID-19 progresses, how consumers respond and what all this means for their own operations.” Recent official UK data also painted a dire picture of the current state of the labour market. The number of Britons claiming jobless benefit soared nearly 70 percent in April to 2.1 million. Unemployment claims surged by a record 856,000 from March, according to the Office for National Statistics. Britain imposed a lockdown on March 23 to halt the spread of the virus, and launched a furlough jobs retention scheme under which the state temporarily pays the bulk of wages.

UK labour market outlook bleakest since 1992: Study

Japan’s economy slipped into recession for the first time in 4-1/2 years, GDP data showed on Monday, putting the nation on course for its deepest postwar slump as the coronavirus crisis takes a heavy toll on businesses and consumers.

The world’s third-largest economy shrank for the second consecutive quarter in the three months to March, intensifying the challenge for policymakers battling a once-in-a-century pandemic that has already caused widespread disruptions.

Gross domestic product (GDP) contracted an annualised 3.4% in the first quarter as private consumption, capital expenditure and exports fell, preliminary official data showed, following a revised 7.3 decline in the October-December period, meeting the technical definition of a recession.

The median market forecast was for a 4.6% contraction in the first quarter.

The last time Japan suffered a recession was in the second half of 2015.

“It’s a near certainty the economy suffered an even deeper decline in the current quarter,” said Yuichi Kodama, chief economist at Meiji Yasuda Research Institute. “Japan has entered a full-blown recession.”

The coronavirus, which first emerged in China late last year, has ravaged the global economy as many nations went into strict lockdowns to curb the outbreak that has so far killed over 310,000 people worldwide. The pandemic has been massively disruptive on supply chains and businesses, particularly in trade-reliant nations such as Japan.

Private consumption, which accounts for more than half of Japan’s $5 trillion economy, slipped 0.7%, versus a 1.6% drop expected by economists.

That marked the second straight quarter of decline, as households were hit by the double-whammy of the coronavirus and a sales tax hike to 10% from 8% in October last year.

The virus’ impact on corporate Japan has been telling, with the GDP data showing exports contracted sharply by 6% in the first quarter.

The shakeout in global trade was highlighted in the recent March data, with Japan’s exports slumping the most in nearly four years due to plunging U.S.-bound shipments including cars.

Capital expenditure fell 0.5% in the fourth quarter, against a median forecast for a 1.5% drop and marked the second consecutive quarter of declines, the data showed.

Taken together, domestic demand knocked 0.7 percentage point off GDP growth, while external demand shed 0.2 points.

All of this has put a strain on the labour market. The jobless rate in March rose to its highest in a year, while job availability slipped to a more than three-year low.

Japan’s economy slipped into recession for the first time in 4-1/2 years, GDP data showed on Monday, putting the nation on course for its deepest postwar slump as the coronavirus crisis takes a heavy toll on businesses and consumers.

Japan’s economy slipped into recession for the first time in 4-1/2 years, GDP data showed on Monday, putting the nation on course for its deepest postwar slump as the coronavirus crisis takes a heavy toll on businesses and consumers. The world’s third-largest economy shrank for the second consecutive quarter in the three months to March, intensifying the challenge for policymakers battling a once-in-a-century pandemic that has already caused widespread disruptions. Gross domestic product (GDP) contracted an annualised 3.4% in the first quarter as private consumption, capital expenditure and exports fell, preliminary official data showed, following a revised 7.3 decline in the October-December period, meeting the technical definition of a recession. The median market forecast was for a 4.6% contraction in the first quarter. The last time Japan suffered a recession was in the second half of 2015. “It’s a near certainty the economy suffered an even deeper decline in the current quarter,” said Yuichi Kodama, chief economist at Meiji Yasuda Research Institute. “Japan has entered a full-blown recession.” The coronavirus, which first emerged in China late last year, has ravaged the global economy as many nations went into strict lockdowns to curb the outbreak that has so far killed over 310,000 people worldwide. The pandemic has been massively disruptive on supply chains and businesses, particularly in trade-reliant nations such as Japan. Private consumption, which accounts for more than half of Japan’s $5 trillion economy, slipped 0.7%, versus a 1.6% drop expected by economists. That marked the second straight quarter of decline, as households were hit by the double-whammy of the coronavirus and a sales tax hike to 10% from 8% in October last year. The virus’ impact on corporate Japan has been telling, with the GDP data showing exports contracted sharply by 6% in the first quarter. The shakeout in global trade was highlighted in the recent March data, with Japan’s exports slumping the most in nearly four years due to plunging U.S.-bound shipments including cars. Capital expenditure fell 0.5% in the fourth quarter, against a median forecast for a 1.5% drop and marked the second consecutive quarter of declines, the data showed. Taken together, domestic demand knocked 0.7 percentage point off GDP growth, while external demand shed 0.2 points. All of this has put a strain on the labour market. The jobless rate in March rose to its highest in a year, while job availability slipped to a more than three-year low.

Japan slips into recession, slump set to worsen as pandemic wreaks havoc

The global economy will take much longer to recover fully from the shock caused by the new coronavirus than initially expected, the head of the International Monetary Fund said, and she stressed the danger of protectionism.

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Managing Director Kristalina Georgieva said the Fund was likely to revise downward its forecast for a 3% contraction in GDP in 2020, but gave no details. That would likely also trigger changes in the Fund's forecast of a partial recovery of 5.8% in 2021.

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In an interview with Reuters, she said data from around the world was worse than expected. "Obviously that means it will take us much longer to have a full recovery from this crisis," Georgieva said in an interview. She gave no specific target date for the rebound.

In April, the global lender forecast that business closures and lockdowns to slow the spread of the virus would throw the world into the deepest recession since the 1930s Great Depression. But data reported since then points to "more bad news," Georgieva said earlier this month.

The IMF is due to release new global projections in June. The global outlook remains a huge focus for finance ministers from the Group of Seven advanced economies, who will meet remotely on Tuesday, according to the U.S. Treasury.

Georgieva told Reuters the Fund was focused on risks such as high debt levels, increased deficits, unemployment, bankruptcies, increased poverty and inequality during the recovery period. But she said the crisis was also boosting the digital economy, offering a chance to boost transparency and e-learning, and give even small firms access to markets.

Asked about renewed tensions between the United States and China - the world's two largest economies, Georgieva said she was urging member countries to maintain open communication and trade flows that had underpinned global growth for decades.

"We do need to keep trade flows open, especially for medical supplies, food, and longer-term to find a pathway to overcome what is happening now with this crisis," Georgieva said. "We want to continue to build this more prosperous future for all by overcoming the scarring that may come from this crisis."

Tensions between the United States and China have spiked in recent weeks, with officials on both sides suggesting a hard-won deal that defused a bitter 18-month trade war could be abandoned months after it was signed.

Georgieva warned against retreating into protectionism as a result of the crisis.

"We should not turn away from what has worked for people everywhere: a division of labor and collaboration and trade, which allows the costs of goods and services to go down, allows incomes to go up, and allows poverty within countries and across countries to retreat," she told Reuters.

The IMF was created after World War Two to foster financial stability, facilitate trade and reduce poverty around the world. It has provided emergency financing to 56 countries since the crisis began and will decide on 47 additional requests as quickly as possible, Georgieva said.

An IMF spokesman said some $21 billion in emergency financing, which carries very low interest rates, had been disbursed thus far.

Georgieva said the Fund could also provide grants to help the poorest countries cover their debt service payments to the IMF through the end of the year, after raising new lending commitments from its members.

The global economy will take much longer to recover fully from the shock caused by the new coronavirus than initially expected, the head of the International Monetary Fund said, and she stressed the danger of protectionism.

The global economy will take much longer to recover fully from the shock caused by the new coronavirus than initially expected, the head of the International Monetary Fund said, and she stressed the danger of protectionism. Also read: US biotech firm Moderna reports 'positive interim' phase 1 results for coronavirus vaccine Managing Director Kristalina Georgieva said the Fund was likely to revise downward its forecast for a 3% contraction in GDP in 2020, but gave no details. That would likely also trigger changes in the Fund's forecast of a partial recovery of 5.8% in 2021. Also read: China's new spin: President Xi presents himself as 'savior' at World Health Assembly In an interview with Reuters, she said data from around the world was worse than expected. "Obviously that means it will take us much longer to have a full recovery from this crisis," Georgieva said in an interview. She gave no specific target date for the rebound. In April, the global lender forecast that business closures and lockdowns to slow the spread of the virus would throw the world into the deepest recession since the 1930s Great Depression. But data reported since then points to "more bad news," Georgieva said earlier this month. The IMF is due to release new global projections in June. The global outlook remains a huge focus for finance ministers from the Group of Seven advanced economies, who will meet remotely on Tuesday, according to the U.S. Treasury. Georgieva told Reuters the Fund was focused on risks such as high debt levels, increased deficits, unemployment, bankruptcies, increased poverty and inequality during the recovery period. But she said the crisis was also boosting the digital economy, offering a chance to boost transparency and e-learning, and give even small firms access to markets. Asked about renewed tensions between the United States and China - the world's two largest economies, Georgieva said she was urging member countries to maintain open communication and trade flows that had underpinned global growth for decades. "We do need to keep trade flows open, especially for medical supplies, food, and longer-term to find a pathway to overcome what is happening now with this crisis," Georgieva said. "We want to continue to build this more prosperous future for all by overcoming the scarring that may come from this crisis." Tensions between the United States and China have spiked in recent weeks, with officials on both sides suggesting a hard-won deal that defused a bitter 18-month trade war could be abandoned months after it was signed. Georgieva warned against retreating into protectionism as a result of the crisis. "We should not turn away from what has worked for people everywhere: a division of labor and collaboration and trade, which allows the costs of goods and services to go down, allows incomes to go up, and allows poverty within countries and across countries to retreat," she told Reuters. The IMF was created after World War Two to foster financial stability, facilitate trade and reduce poverty around the world. It has provided emergency financing to 56 countries since the crisis began and will decide on 47 additional requests as quickly as possible, Georgieva said. An IMF spokesman said some $21 billion in emergency financing, which carries very low interest rates, had been disbursed thus far. Georgieva said the Fund could also provide grants to help the poorest countries cover their debt service payments to the IMF through the end of the year, after raising new lending commitments from its members.

IMF chief warns full global economic recovery unlikely in 2021

The UK’s hospitality sector has taken a dramatic financial hit since they were ordered to close down in the month of March.

UK: Cafes struggle to stay afloat

India's finance minister Nirmala Sitharaman said, Five pillars of "Atmanirbhar Bharat" include - economy, infrastructure, system, demography and demand.

Indian government outlines economy revival plan

As a Coronavirus pandemic is staring a path of world economies, we are certainly staring at a devastating recession. Fears are growing that the worldwide economic downturn could be deep and lengthy with recovery limited by continued anxiety.

COVID-19: How much will the global economy lose?

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

These are unprecedented times for the global economy and that is an understatement. But, the pandemic has set back the global economy by decades. Also read: How is the Chinese economy's shrinkage reconfiguring the global economy?

These are unprecedented times for the global economy and that is an understatement. But, the pandemic has set back the global economy by decades. Also read: How is the Chinese economy's shrinkage reconfiguring the global economy? The alarm bells are ringing at IMF and world bank as pressure mounts on these institutions to help the poor countries. Advanced economies are the worst-hit and in these times -- even the grimmest economic forecasts show a sense of optimism. Also read: One-day coronavirus deaths in US surpasses 9/11, Iraq war toll It’s hard not to try and find hope in circumstances not seen since the great depression. Worst economic collapse since the great depression Today, the world is staring at an economic collapse -- possibly the worst in nearly a hundred years. The coronavirus pandemic has undone decades of economic development, threatening to push more people into poverty. Let's take a look at the three months timeline where it all began: In January, the international monetary fund said the world economy would grow at about three per cent in 2020. Now, it says the world economy is drained. IMF: World economy to shrinks by 3 per cent in 2020 IMF's predictions have been overturned now the global economy will contract by three per cent this year. Let’s begin the survey of the global economic damage with the global south: Asia to record zero growth in 2020 Coronavirus is sure to end Asia's 60-year growth streak, according to the IMF which means zero growth in 2020. This is much worse than the global financial crisis of 2008 and that year, Asia grew at 4.7 per cent. Take the region’s worst financial crisis, the Asian currency crisis in the 1990s. Even then, Asia grew at slightly more than one per cent. Latin America facing the worst recession in 50 years The IMF predicts the worst recession in half a century. One out of three people could lose their jobs in South America. That’s over 200 million people unemployed on a single continent. Nearly half the jobs could be lost in Africa In Africa, nearly half the jobs could be lost without urgent action. In the global north, the advanced economies are the worst-affected. Advanced economies to shrink at 6 per cent in 2020 The IMF sees them shrinking by at least 6 per cent this year. That’s a negative growth rate. The United Kingdom’s GDP could contract by 35 per cent this quarter. Both advanced & emerging economies in recession A true global recession is rare and it is on now. Both advanced and emerging economies are in deep trouble at the same time. The total output loss could be around $9 trillion. IMF has mobilised $8 trillion But, there is a shortage of public finances, especially in poorer countries. Nearly two more trillion dollars are required to support developing economies. IMF raises $11 billion from 5 countries The IMF has also received over 11 billion dollars as a pledge from five countries. Japan, the United Kingdom, France, Canada, and Australia have contributed. G20 countries freeze debt repayments for poor countries The G20 countries have suspended debt repayments. This will free up at least 20 billion dollars in poorer countries for fighting the pandemic. Now, China has urged the World Bank to do the same. Defer loan payments perhaps China should lead by example.

Coronavirus has brought world economy on its knees, is a global recession inevitable?

The coronavirus pandemic is pushing the global economy into its deepest recession in a century, cutting world output by three per cent this year, and the crisis could get worse, the International Monetary Fund said Tuesday. 
 
Also read:&nbsp;<a href="https://www.wionews.com/world/new-york-governor-says-hospitalization-covid-19-infections-down-while-taking-a-dig-at-king-trump-292515" hreflang="en">New York governor says COVID-19 infections down; takes a dig at 'King Trump'</a>

The downturn will slash $9 trillion from the world economy, IMF chief economist Gita Gopinath told reporters as she presented the latest forecasts in the World Economic Outlook.

If the virus is contained and economies can begin operating again, 2021 should see a rebound of 5.8 per cent, according to the IMF. 
 
Also read:&nbsp;<a href="https://www.wionews.com/world/experts-say-trump-has-little-power-to-restart-us-economy-292451" hreflang="en">Experts say Trump has little power to restart US&nbsp;economy</a>

But the authors acknowledged the difficulty in making an accurate forecast amid the rapidly changing situation.

With much of the global economy shut down amid efforts to contain the virus and keep health systems from collapsing, the IMF warned that there are "severe risks of a worse outcome" due to the "extreme uncertainty around the strength of the recovery."

"The cumulative loss to global GDP over 2020 and 2021 from the pandemic crisis could be around $9 trillion, greater than the economies of Japan and Germany combined," Gopinath said.

The coronavirus has infected nearly two million people worldwide and killed close to 120,000, bringing travel to a standstill and forcing businesses, shops and restaurants to close.

"Much worse growth outcomes are possible and maybe even likely," the report cautioned, "if the pandemic and containment measures last longer... or if widespread scarring effects emerge due to firm closures and extended unemployment."

'The Great Lockdown'

The report, released ahead of the virtual spring meetings of the IMF and World Bank, said "The Great Lockdown" -- as the IMF dubbed the global downturn -- is the worst since the Great Depression of the 1930s.

It also is the first contraction since 2009 during the global financial crisis, but that episode hardly bears comparison. Though the effects lingered, the decline amounted to just 0.1 per cent, and large emerging market economies were still growing at a solid pace.

This year, the only economies expected to be spared from the recession are China -- where the virus originated -- and India, but even those countries will see only relatively paltry growth of 1.2 per cent and 1.9 per cent, respectively.

In the depression nearly a century ago, the global economy contracted by about 10 per cent while advanced economies shrunk by 16 per cent from 1929 to 1932. The IMF now expects advanced economies to shrink by six per cent in 2020.

The US economy is expected to contract by 5.9 per cent but see growth recover by 4.7 per cent next year.

However, the forecasts assume the pandemic will fade in the second half of the year.

The IMF projects drop of 7.2 per cent in France and 6.5 per cent in Britain, but the governments in those countries are even more pessimistic, projecting contractions of eight per cent and 13 per cent, respectively.

Must work together

The severe slowdown is "unavoidable," but "substantial targeted fiscal, monetary and financial" measures can soften the blow, the IMF said.

Many governments have already deployed massive spending measures in tandem with central banks that have been pumping liquidity into the financial system to prevent any breakdown.

But Gopinath said, even more, will be needed once the health crisis is over.

"Once the recovery happens, and we are past the pandemic phase for advanced economies, it would be essential to undertake a broad-based fiscal stimulus," she said.

The spending "would be even more effective if it were coordinated across all the advanced economies of the world," she said.

Synchronized actions "can magnify their impact" but also can avoid some of the errors of the past century when countries adopted "futile mercantilist policies... which further worsened the global downturn," the report said.

Inevitably the massive spending will lead to sharp increases in government debt -- already at over 80 per cent of GDP -- and deficit levels.

But Gopinath said if the recovery begins in 2021, and with interest rates very low, "the combination should help in bringing down debt levels slowly over time."

Some countries, however, will need relief from debt obligations.

Finance ministers and central bank governors from the Group of Seven advanced economies on Tuesday endorsed a plan to provide a temporary standstill in debt payments from the world's poorest nations if the broader Group of 20 agrees.

The G20, which includes major emerging market economies like China and Russia, is expected to make a statement on Wednesday that could cover debt relief.

The coronavirus pandemic is pushing the global economy into its deepest recession in a century, cutting world output by three per cent this year, and the crisis could get worse, the International Monetary Fund said Tuesday.

The coronavirus pandemic is pushing the global economy into its deepest recession in a century, cutting world output by three per cent this year, and the crisis could get worse, the International Monetary Fund said Tuesday. Also read: New York governor says COVID-19 infections down; takes a dig at 'King Trump' The downturn will slash $9 trillion from the world economy, IMF chief economist Gita Gopinath told reporters as she presented the latest forecasts in the World Economic Outlook. If the virus is contained and economies can begin operating again, 2021 should see a rebound of 5.8 per cent, according to the IMF. Also read: Experts say Trump has little power to restart US economy But the authors acknowledged the difficulty in making an accurate forecast amid the rapidly changing situation. With much of the global economy shut down amid efforts to contain the virus and keep health systems from collapsing, the IMF warned that there are "severe risks of a worse outcome" due to the "extreme uncertainty around the strength of the recovery." "The cumulative loss to global GDP over 2020 and 2021 from the pandemic crisis could be around $9 trillion, greater than the economies of Japan and Germany combined," Gopinath said. The coronavirus has infected nearly two million people worldwide and killed close to 120,000, bringing travel to a standstill and forcing businesses, shops and restaurants to close. "Much worse growth outcomes are possible and maybe even likely," the report cautioned, "if the pandemic and containment measures last longer... or if widespread scarring effects emerge due to firm closures and extended unemployment." 'The Great Lockdown' The report, released ahead of the virtual spring meetings of the IMF and World Bank, said "The Great Lockdown" -- as the IMF dubbed the global downturn -- is the worst since the Great Depression of the 1930s. It also is the first contraction since 2009 during the global financial crisis, but that episode hardly bears comparison. Though the effects lingered, the decline amounted to just 0.1 per cent, and large emerging market economies were still growing at a solid pace. This year, the only economies expected to be spared from the recession are China -- where the virus originated -- and India, but even those countries will see only relatively paltry growth of 1.2 per cent and 1.9 per cent, respectively. In the depression nearly a century ago, the global economy contracted by about 10 per cent while advanced economies shrunk by 16 per cent from 1929 to 1932. The IMF now expects advanced economies to shrink by six per cent in 2020. The US economy is expected to contract by 5.9 per cent but see growth recover by 4.7 per cent next year. However, the forecasts assume the pandemic will fade in the second half of the year. The IMF projects drop of 7.2 per cent in France and 6.5 per cent in Britain, but the governments in those countries are even more pessimistic, projecting contractions of eight per cent and 13 per cent, respectively. Must work together The severe slowdown is "unavoidable," but "substantial targeted fiscal, monetary and financial" measures can soften the blow, the IMF said. Many governments have already deployed massive spending measures in tandem with central banks that have been pumping liquidity into the financial system to prevent any breakdown. But Gopinath said, even more, will be needed once the health crisis is over. "Once the recovery happens, and we are past the pandemic phase for advanced economies, it would be essential to undertake a broad-based fiscal stimulus," she said. The spending "would be even more effective if it were coordinated across all the advanced economies of the world," she said. Synchronized actions "can magnify their impact" but also can avoid some of the errors of the past century when countries adopted "futile mercantilist policies... which further worsened the global downturn," the report said. Inevitably the massive spending will lead to sharp increases in government debt -- already at over 80 per cent of GDP -- and deficit levels. But Gopinath said if the recovery begins in 2021, and with interest rates very low, "the combination should help in bringing down debt levels slowly over time." Some countries, however, will need relief from debt obligations. Finance ministers and central bank governors from the Group of Seven advanced economies on Tuesday endorsed a plan to provide a temporary standstill in debt payments from the world's poorest nations if the broader Group of 20 agrees. The G20, which includes major emerging market economies like China and Russia, is expected to make a statement on Wednesday that could cover debt relief.

Pandemic causing deep recession, and it could get worse: IMF

The International Monetary Fund has made some dire predictions. The organisation says the world is staring at its worst recession in almost 100 years due to the coronavirus outbreak. tells you more.

Gravitas: Wuhan Coronavirus will unleash the worst recession since Great Depression

South Africa slipped into recession in the final three months of 2019, the country's statistics bureau said on Tuesday, the third contraction to hit the economy since the end of apartheid in 1994.

The weak performance adds pressure on President Cyril Ramaphosa's administration which has been struggling to keep his election pledge to revive economic activity.

Instead, South Africa remains dogged by high and rising debt, low growth and soaring unemployment.

Also read: <a href="https://www.wionews.com/opinions-blogs/how-this-economic-slowdown-is-different-from-the-previous-ones-283955">How this economic slowdown is different from the previous ones</a>

Gross domestic product fell by 1.4 percent in the fourth quarter, after dropping by 0.8 percent in the previous three months, Statistics South Africa said.

This took growth in Africa's most industrialised country for all of 2019 to just 0.2 percent, its lowest reading since the global financial crisis in 2009.

Weak agriculture output and transport were the main drags on growth, StatsSA said, followed by construction, mining and manufacturing, which outweighed positive contributions from finance and government spending.

Also see: <a href="https://www.wionews.com/world/coronavirus-outbreak-after-slowdown-cases-in-china-rise-again-54-die-in-iran-283564">Coronavirus outbreak: After slowdown, cases in China rise again; 54 die in Iran</a>

Seven of the nation's 10 economic sectors contracted in the fourth quarter, StatsSA said.

"Finance, mining and personal services managed to keep their heads above water, but this was not enough to prevent the economy from sliding into its third recession since 1994," it remarked.

Drought in parts of the country and floods in others hurt agriculture and power station output, leading to disruptions in electricity, gas and water supplies.

Recession is defined as two consecutive quarters of negative growth.

South Africa previously went into recession in 2008/2009 and then again in 2018.&nbsp;

The International Monetary Fund last year urged more "decisive" reforms to boost private investment in South Africa, forecasting economic growth to remain sluggish for a sixth consecutive year in 2020.

&nbsp;

South Africa slipped into recession in the final three months of 2019, the country's statistics bureau said on Tuesday, the third contraction to hit the economy since the end of apartheid in 1994.

South Africa slipped into recession in the final three months of 2019, the country's statistics bureau said on Tuesday, the third contraction to hit the economy since the end of apartheid in 1994. The weak performance adds pressure on President Cyril Ramaphosa's administration which has been struggling to keep his election pledge to revive economic activity. Instead, South Africa remains dogged by high and rising debt, low growth and soaring unemployment. Also read: How this economic slowdown is different from the previous ones Gross domestic product fell by 1.4 percent in the fourth quarter, after dropping by 0.8 percent in the previous three months, Statistics South Africa said. This took growth in Africa's most industrialised country for all of 2019 to just 0.2 percent, its lowest reading since the global financial crisis in 2009. Weak agriculture output and transport were the main drags on growth, StatsSA said, followed by construction, mining and manufacturing, which outweighed positive contributions from finance and government spending. Also see: Coronavirus outbreak: After slowdown, cases in China rise again; 54 die in Iran Seven of the nation's 10 economic sectors contracted in the fourth quarter, StatsSA said. "Finance, mining and personal services managed to keep their heads above water, but this was not enough to prevent the economy from sliding into its third recession since 1994," it remarked. Drought in parts of the country and floods in others hurt agriculture and power station output, leading to disruptions in electricity, gas and water supplies. Recession is defined as two consecutive quarters of negative growth. South Africa previously went into recession in 2008/2009 and then again in 2018. The International Monetary Fund last year urged more "decisive" reforms to boost private investment in South Africa, forecasting economic growth to remain sluggish for a sixth consecutive year in 2020.

South Africa slips into recession

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