An unfortunate consequence of Covid-19 is the adverse impact on the economy. India’s economy contracted by 23.9% in the first quarter of the fiscal year, according to data from the government. It reveals that all sectors of the economy, except agriculture, shrank in the first quarter. Beyond the national level, however, we are keen to understand how state economies are doing. It might be a while before the data on state economies becomes available, so we used micro-data from the Google mobility report to analyse contractions in economic activity across states.
We studied trends in the retail and recreation sector such as visits to restaurants, malls, commercial centres and so on to gauge the impact of Covid-19 on economic activity. The analysis reveals an overall sharp contraction of approximately 38% that still prevails across India, compared to the period prior to Covid (January 3 to February 6). The time trend
By Paul Hannon
China and other rich countries will suffer less economic damage from the coronavirus pandemic than previously feared, according to the Organization for Economic Cooperation and Development, but the global public health emergency will exact a higher toll on the economies of poor countries.
The Paris-based research body Wednesday said the global economy will contract less sharply this year than it thought likely in June, but warned that the recovery is set to slow from this month and remain vulnerable to fresh outbreaks. The OECD doesn’t expect a vaccine to be widely available until the end of next year.
“Momentum appears to be plateauing and confidence remains weak,” said Laurence Boone, the OECD’s chief economist.
In the latest of its quarterly reports on the global economy, the research body said it now expects the U.S. economy to shrink by 3.8% this year, having forecast a decline of 7.3%