As per the latest report by UN Trade (UNCTAD) the World economy will go into a prolonged recession this year with a predicted loss of trillions of dollars of global income due to the coronavirus pandemic.
The developing countries will be in serious trouble, but, India and China to be exceptions.
The UN wants a bailout package to the tune of $ 2.5 trillion for these Developing economies as more than two-thirds of the world’s population live here.
According to UNCTAD, India to be possible exception along with China even so, the world economy will go into recession this year with a predicted loss of global income in trillions of dollars.
The report, however, did not give a detailed explanation as to why and how India and China will be the exceptions as the world faces a recession and loss in global income that will impact developing countries.
Further, given the deteriorating global conditions, fiscal and foreign exchange constraints are bound to tighten further over the course of the year. The UNCTAD estimates a $2 trillion to $3 trillion financing gap facing developing countries over the next two years. In the face of a looming financial tsunami this year.