The UNCTAD also mentioned that advanced economies and China, the members of G20 countries, will pump in USD 5 trillion to revive their economies.
United Nations| Latest UN trade report suggested that the global economy will go into a recession this year with bearing a loss of trillions of dollars to the global income in light of the coronavirus pandemic. It also predicted serious troubles for developing countries with the possible exception of India and China.
With the majority of the world population living in developing countries are facing a novel and devastating economic damage because of the coronavirus crisis, the United Nations is calling for USD 2.5 trillion package to rescue these countries.
According to a new analysis called, “The COVID-19 Shock to Developing Countries: Towards a ”whatever it takes” programme for the two-thirds of the world’s population being left behind”, United Nations Conference on Trade and Development (UNCTAD), the UN trade and development body said that countries rich with commodities will face USD 2 trillion to USD 3 trillion fall in investments from overseas in next two years.
The UNCTAD also mentioned that advanced economies and China have put together massive government packages which, according to G20 countries, will pump in USD 5 trillion to revive their economies.
It said, “This represents an unprecedented response to an unprecedented crisis, which will attenuate the extent of the shock physically, economically and psychologically.”
“Even so, the world economy will go into recession this year with a predicted loss of global income in trillions of dollars. This will spell serious trouble for developing countries, with the likely exception of China and the possible exception of India,” it further added.
However, the report did not significantly elaborate on why and how China and India will be exceptions as the developing economies will suffer through the recession.
It has also estimated a USD 2 trillion to USD 3 trillion financing gap for the developing countries in the next two years.
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