Question

whats the worlds current economic situation. 100 to 200 words​

Answer 1

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Answer,

• Against the backdrop of a raging and devastating pandemic, the world economy is projected to shrink by 3.2 per cent in 2020.

• Under the baseline scenario, GDP growth in developed countries will plunge to –5.0 per cent in 2020, while output of developing countries will shrink by 0.7 per cent.

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Answer 2

ECONOMIC SITUATION

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India’s growth had been moderating since the beginning of 2018-19. The government’s reluctance, or inability, to do the heavy lifting is a concern, both in terms of a sentiment booster and a trigger to catalyse the wider investment drive. This would continue to be a challenge, given that in 2020-21, the Centre’s gross tax receipts are projected to fall by over 10 per cent, on top of the 3.4 per cent slide in 2019-20. Non-tax revenues appear to be bleak. States, saddled with higher expenditure on health and locked in a tussle with the Centre over GST payouts, are unlikely to restart the capex cycle. If demand conditions cannot be rekindled, the private sector is not expected to restart investments or hiring, which would further deteriorate demand conditions. In the absence of a counterbalancing push, the problem could turn cyclical.

• Contact service sectors such as hotels, restaurants, airlines, salons, which were doing exceptionally well before the pandemic, are among the worst hit, and will continue to struggle till the time the fear of the virus lasts.
• Demand conditions remain weak, evidenced by the decline in exports and imports, which reflect the state of external and domestic demand, according to NCAER.