Coronavirus pandemic to blow $28 TRILLION hole in global economy

Coronavirus pandemic to blow $28 TRILLION hole in global economy

Bangladesh's gross savings rate was recorded at 30.1% in June 2020, and 29.5% in June 2019, against a record low of 27.4% in June 2018, data showed. The World Health Organization has also busted some myths surrounding coronavirus.

In its latest World Economic Outlook released this week, the International Monetary Fund has projected the Indian economy to contract 10.3 per cent in 2020-21, a deeper hit than the June estimate of 4.5 per cent contraction in the wake of the economic slump due to Covid-19 pandemic. The economy is now expected to decline 4.3 percent this year, and post growth of 3.9 percent in 2021.

Rahman said the Sheikh Hasina government's success in bringing peace and stability, creating infrastructure and ensuring macroeconomic stability had helped Bangladesh achieve a steady growth path.

That's more than 15 and 17 percentage points, respectively, higher than the United States share of expected global output.

Some economists have forecast that China's GDP growth rate is likely to pick up to above 5 percent following a strong rebound of 3.2 percent in the second quarter.

China's growth this year is "a very positive development for China, and it's a very positive development for the world, given the importance that China does have in the world economy", Gaspar said.

World Health Organization defends data after concluding Gilead's remdesivir flopped Covid trial
Almost 39 million people around the world have been diagnosed with COVID-19 and more than one million have died. Until now, remdesivir has been the only drug that appeared to have specific effects for coronavirus.

The IMF is not the only worldwide organization that has raised its forecast for China.

For his part, Deputy Minister for Financial Policy and Institutional Development, Ahmed Kojak, said that this report confirms the confidence of the International Monetary Fund experts in the performance of the national economy, while they raised their estimates of the growth rate of the Egyptian economy during the past two years and the current one, adding that the growth rate was negative in the economies of emerging and developing countries. Other rating agencies have also revised up their forecast on China's GDP growth this year, to 1.9 percent for Moody's and 2.7 percent for Fitch.

She said this was partly because countries needed to boost spending to fight the crisis and secure the recovery. However, thanks to India's huge population and persisting economic challenges, Bangladesh may have a higher per capita GDP than India in 2020 and also in 2025, a distinction it is expected to achieve for the first time. "The purchasing managers subindex for services climbed to 55.2 in September, the highest reading since June 2012", they said in a research note. Support should shift gradually from protecting old jobs to getting people back to work for example, by reducing job retention programs (wage subsidies), reintroducing job search requirements, and training new skills and helping viable but still-vulnerable firms safely reopen.

At a news conference, Gopinath said it was critical that government economic support not be withdrawn too quickly. Under UPA 2, it had increased by 19.8 per cent, the sources said. He added that China will increase its contribution to global economic growth, which could potentially further change the global economic structure.

IMF Chief Economist Gita Gopinath said some $ 12 trillion in fiscal support and unprecedented monetary easing from governments and central banks had helped to limit the damage from the pandemic and support must be maintained.

What makes this situation even worse is that till five years ago, India's per capita GDP was almost 40% higher than Bangladesh's.

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