India, China may become exception as world economy to go in recession: UN Trade Report
New Delhi : The world economy is set to go into recession amid predicted loss of trillions of dollars of global income due to economic slowdown caused by coronavirus outbreak; India and China may become an exception who would survive the situation, said a UN Trade Report.
With two-thirds of the world’s population living in developing countries facing unprecedented economic damage from the COVID-19 crisis, the UN is calling for a USD 2.5 trillion rescue package for these nations.
The United Nations Conference on Trade and Development (UNCTAD) said that China and other developed economies have put together massive government packages which will extend a USD 5 trillion lifeline to their economies.
"This represents an unprecedented response to an unprecedented crisis, which will attenuate the extent of the shock physically, economically and psychologically," it said.
"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," the UNCTAD said.
The report did not detail over the fact on how and why India and China will be an exception to the global recession.
The UNCTAD estimates a USD 2 trillion to USD 3 trillion financing gap facing developing countries over the next two years.