The United Nations Conference on Trade and Development (UNCTAD), United Nations Department of Economic and Social Affairs (UN DESA) and the five United Nations Regional Economic Commissions have recently released the World Economic Situation and Prospects 2020 (WESP). The report highlights strong economic risks, significant political polarization and growing scepticism towards multilateralism.
Key Findings about India
According to the WESP report, India is advised to execute structural changes in order to face a global and national economic downturn. The combination of fiscal stimulus, relaxed monetary policy and financial sector reforms is projected to bolster a recovery in growth to 6.6 %. Interestingly, India experienced a notable decline from 6.8% in 2018 to 5.7 % in 2019. Moreover, the report suggests that India might be among the few countries where the per capita GDP growth rate could exceed 4 % in 2020. It’s worth noting that the per capita GDP refers to the ratio of the nation’s gross domestic product by its total population.
Role of Fiscal Stimulus
Fiscal Stimulation refers to an increase in public expenditure or a decrease in taxation by the government to enable consumers to have more money. This approach is essentially geared towards encouraging and fostering economic growth.
Global Economic Findings
The WESP report identifies East Asia as the world’s fastest-growing region which continues to remain the leading contributor to global growth. Large emerging nations including Brazil, India, Mexico, Russia and Turkey are expected to witness an economic upturn in 2020. The report also draws attention to the shift in global economic decision-making power from EU, the US and other developed nations towards China, India and other developing economies. Hence, global cooperation mechanisms must consider this changing equilibrium.
Key Figures From the Report
| Area | Statistic |
|---|---|
| Per capita income | One in five countries will see stagnation or decline in 2020 |
| Poverty reduction | The share of population living in extreme poverty has declined steadily, largely due to successes in China and India |
| Climate change impact on economy | Climate disruption poses a growing risk to short- and long-term economic prospects. Change in energy supply mix from fossil fuels to renewable energy sources is essential |
Impact on Sustainable Development Goals
One of the most significant concerns highlighted in the report is how the prolonged weakness in the global economic activity could severely impact the implementation of Sustainable Development Goals.
About UNCTAD
The United Nations Conference on Trade and Development (UNCTAD) was established in 1964 with an objective to foster development-friendly integration of developing countries into the world economy. UNCTAD, headquartered at Geneva in Switzerland, is a permanent intergovernmental body. Some of its publications include Trade and Development Report, World Investment Report, The Least Developed Countries Report, Information and Economy Report, Technology and Innovation Report and Commodities and Development Report.
Last Modified: February 7, 2024