How economy is being affected by the Covid-19 pandemic & resulting lockdown?

Corona’s effect on economy-

In India-  Economic crisis in India after 2009.

• Due to The Covid-19 pandemic  & resulting lock-down, Moody’s  Investors  Service has slashed its GDP growth forecast for  India to 2.5% in 2020, a sharp drop from the earlier projection of 5.3%.

• The rating agency expects the country’s economy to recover in 2021,estimating a growth rate of 5.8%, but warned that uncertainty regarding the virus spread and containment made it difficult to fully assess the economic toll  of the crisis. 

In World- World is now in recession.

• Globally the world economy is facing an unprecedented shock and the G-20 countries are likely to see an overall contraction of GDP by 0.5 % according to Moody's Global Macro outlook 2020-21. Virus-hit developing nations need dollops of funding.

• The Covid-19 pandemic has driven the global economy into a downturn that will require massive funding to help developing Nations said by IMF Chief Kristalina Georgieva.

• “It’s clear that we have entered a recession” that will be worse than the one in 2009 following the global financial crisis. With the worldwide economic "sudden drop", the fund estimate for the overall financial needs of emerging market is  $ 2.5 trillion. But she warned that the estimate is "on the lower end".

• Over 80 countries mostly with low income have already requested emergency aid from the International Monetary Fund.