Indian economy will contract by 5.9% in 2020-’21, says UNs Conference on Trade and Development

The United Nations on Tuesday said in a report that the Indian economy will contract by 5.9% in the 2020-’21 financial year due to the impact of the lockdown imposed to curb the spread of the coronavirus. The world body said that though there will be a recovery in the following year, the contraction will result in permanent loss of income.

The global economy, on the other hand, will contract by 4.3% this year, the United Nations said in its Trade and Development Report 2020, published by the UN Conference on Trade and Development, or UNCTAD. This will translate into a loss of $6 trillion (Rs 4,41,39,300 crore).

“In short, the world is grappling with the equivalent of a complete wipeout of the Brazilian, Indian and Mexican economies,” the report said. “And as domestic activity contracts, so goes the international economy; trade will shrink by around one-fifth this…

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