Amid the global economic downturn due to the coronavirus, foreign investors have withdrawn approximately $ 26 billion from developing economies in Asia and more than $ 16 billion from India, according to a latest report from Congress.
"Foreign investors have drawn approximately $ 26 billion from Asia's developing economies and more than $ 16 billion from India, raising concerns of a major economic downturn in Asia," said the Congress Research Center independent in its latest report on the global economic effects of COVID- 19)
In Europe, more than 30 million people in Germany, France, the United Kingdom, Spain and Italy have applied for state aid, while data for the first quarter of 2020 indicate that the eurozone economy contracted by 3.8%, the biggest quarterly decline since the series began in 1995, it said.
In the United States, preliminary data indicated that GDP fell 4.8 percent in the first quarter of 2020, the largest quarterly decline since the fourth quarter of 2008 during the global financial crisis, the CRS said.
According to CRS, the pandemic crisis is challenging governments to implement monetary and fiscal policies that support credit markets and sustain economic activity, while implementing policies to develop vaccines and protect their citizens.
In doing so, however, differences in policy approaches are forcing relations between countries that promote nationalism and those that advocate for a coordinated international response.
Policy differences are also forcing relations between developed and developing economies and between members of the north and south of the eurozone, challenging alliances and raising questions about the future of world leadership, according to the report.
From NDTV News
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