The world economy will go into recession with the likely exception of India and China- UN

An unprecedented damage has already been done by the COVID-19 this year. The entire world is now facing the economic damage caused by the deadly virus.

The consequences of a combined health pandemic and a global recession will be catastrophic for many developing countries and halt their progress towards the Sustainable Development Goals - UN

The United Nation (UN) is calling for a USD 2.5 trillion rescue package for the developing nations out of which

• $1 trillion should be made available through the expanded use of special drawing rights
• $1 trillion of debts owed by developing countries should be cancelled this year
• $500 billion needed to fund a Marshall Plan for health recovery and dispersed as grants

According to the new analysis from United Nations Conference on Trade and Development (UNCTAD), the UN trade and development body titled ‘The COVID-19 Shock to Developing Countries: Towards a ‘whatever it takes’ programme for the two-thirds of the world’s population being left behind’, commodity-rich exporting countries will face a USD 2 trillion to USD 3 trillion drop in investments from overseas in the next two years.


According to the UN report, Even so, the world economy will go into recession this year with a predicted loss of global income in the trillions of dollars. This will spell serious trouble for developing countries, with the likely exception of China and the possible exception of India.