India’s second Covid wave will impact GDP – Macroeconomic influencers

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Economists estimate that the collapse of India’s healthcare system amid the rapid spread of a second wave of coronavirus infection will cause India’s GDP growth rate to contract in 2021.

Christophe Barraud

Christophe Barraud, economist, shared an article on the deterioration of India’s GDP growth rate for 2021 from 11.8% to 10.2% by global forecasting firm Oxford Economics. The collapse of the health system amid the growing number of Covid-19 cases in the country, the low vaccination rate and the lack of an effective government strategy to combat the pandemic have been attributed as the main reasons for lowering the rate. GDP growth.

The Indian government’s targeted foreclosure approach and firm consumer behavior may mitigate the economic impact of Wave 2. However, if health systems continue to be overloaded with cases and states are forced to impose strict restrictions, the rate of GDP growth could be further scaled back.

Amanda glassman

Amanda Glassman, Executive Vice President and Senior Fellow at the Center for Global Development, shared an article on the economic case for global vaccinations. The global economy could lose up to $ 9.2 billion if developing economies do not have access to Covid-19 vaccines, according to a study by the International Chamber of Commerce (ICC) Research Foundation.

Covid-19 vaccines have been shown to be effective in mitigating the economic and health consequences of the pandemic, although access to these vaccines has been uneven across the world. Developed economies have been successful in securing the supply of the most effective Covid-19 vaccines, which has severely affected their access to emerging economies. Additionally, the COVID-19 Tools Accelerator (ACT), which provides equitable access to coronavirus testing and treatment, is underfunded, hampering its ability to procure vaccines for developing countries. .

The losses caused by unequal distribution and access of vaccines are far less than the funding needed to ensure equitable access to all economies. Funding for the ACT accelerator and a coordinated approach to vaccine delivery are essential for the recovery of the global economy after the pandemic.

John ashcroft

John Ashcroft, economist, shared an article on Goldman Sachs’ prediction that the UK economy is expected to grow faster than the US economy in 2021. UK GDP is expected to grow 7.8% in 2021 from 5.5% in the USA. The investment bank noted that the UK economy was emerging from the Covid-19 crisis faster than expected with April’s flash purchasing managers’ index (PMI) and the services PMI booming.

The UK economy shrank 9.8% in 2020, the worst of the G7 advanced economies. However, the economy contracted less than expected in the first quarter of the year despite the lockdowns. In addition, households are expected to spend more than 5% of the £ 150 billion ($ 208.4 billion) in savings made during the pandemic, thus boosting GDP growth.

Constantine Gurdgiev

Constantin Gurdgiev, an economist, shared an article on Greece submitting an economic stimulus package to the European Union (EU) to boost economic growth by seven percentage points over the next six years. Greece was supposed to receive 18.2 billion euros ($ 21.96 billion) in grants and 13 billion euros ($ 15.7 billion) in cheap loans, as part of a recovery program of the coronavirus approved by EU leaders last year.

The package is equivalent to 16% of the country’s GDP and is expected to help the country recover from the economic crisis created by the pandemic. It also includes 170 proposed projects focused primarily on green energy outside of digital upgrades and transport infrastructure development.





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