There is a possibility of a decline in global business due to the arrival of many countries around the world from China. Because of Corona, two of the world’s largest economies, China and the US are expected to slow down in business, which is going to affect the whole world. The Indian government is also conscious of the impact of Corona on the economy. Finance Minister Nirmala Sitharaman says that options are being looked into at various levels in this matter. Secretaries of several ministries are constantly reviewing the impact of the corona and keeping a close watch.
What do analysts say
Analysts say that India doing more than 150 billion dollars (about 10 lakh crore rupees) business with the US and China will also not remain untouched. However, economists are currently denying any effect of Corona on the growth rate of the Indian economy. According to a report by research and rating agency Moody’s Analytics, the global economy is expected to decline by 0.4 percent this year due to Corona.
In the year of 2020, the overall rate of global increase up to something 2.8 %, which is decreased by 2.4%.
No effect on Indian GDP
Economist Govind Rao says that Corona will have both positive and negative effects on the Indian economy. If the supply chain is affected, there may be a shortage of raw materials for many things, then many things will become cheaper. But it is too early to comment on how Indian growth is affected by Corona. Ajay Sahai, CEO, and DG, Federation of Indian Export Organizations (FIEO), says the import bill could also rise in the face of a shortage of raw materials and rising production costs.
The anticipation of one percent decline
The World Bank is also anticipating a fall of one percent in global growth due to Corona. An alert has also been issued in the US regarding Corona. Many countries like Iraq, Iran, Italy, South Korea, are affected by Corona.
According to a Moody’s Analytics report, due to Corona in the world’s largest US economy, the growth rate of the US economy is projected to fall by 0.2 percent to 1.7 percent in the year 2020. In the first half of this year, the world’s business, including the US, is expected to slow down.
Why is there a possibility of lethargy
The Moody’s Analytics report states that China’s tourism business is in complete disarray. Foreign airlines are not going to China and cruise travel is also canceled. Due to the impact of China, tourism is affecting the world. 3 million Chinese alone visit the US every year. Due to the outbreak of Corona in Italy, tourists are now trimming to go to Europe, due to which tourism of Europe is going to be affected. The report states that the closure of factories in China is affecting big companies like Apple, Nike and General Motors and due to shortage of goods, the price of goods will increase in the next one or two months in the US Walmart and Amazon stores. Will go.
According to a report outside China it is according to 2 % as the mainland which indirectly affects all the Aisan countries’ economies.
Many things will become cheaper
China is the largest buyer of various commodities globally. But due to the decrease in demand from China, many products like crude oil, copper, soybean, and pork will become cheap globally. But the economy of the countries supplying China will be affected. This will have an adverse effect on the domestic economy of many countries, especially in Latin America.