Owing to a set of financial drawbacks because of the pandemic crisis, the Asian economies altogether have experienced a foreign investment pull out of $26 Billion by the European businesses. Out of the 26, $16 Billion has been pulled out from India.
“Foreign investors have pulled an estimated USD 26 billion out of developing Asian economies and more than USD16 billion out of India, increasing concerns of a major economic recession in Asia,” independent Congressional Research Center said in its latest report on global economic effects of COVID-19.
The country has been under complete lockdown since the third week of March with only essential
services open as a measure to prevent the spread of COVID-19. This has helped the country from the spread but on the other hand has given major blows to the national economy. As most of the businesses in the country are under partial or complete lockdown, that in the first quarter of the year is a major blow to the economy overall and the pull out of investments is only a part of it.
More than 30 million people in the popular European countries have requested for state support and reports suggest that the European economy is down by 3.8 percent in the first quarter which is the lowest since the year of 1995.
The CRS data has revealed the US GDP fall by 4.8 percent in the first quarter of 2020 which has been the largest quarterly fall since the financial crisis which hit the fourth quarter of 2008. The CRS data also reveals that the pandemic crisis is forcing governments all across the world to implement monetary and fiscal measures and give people access to direct credit so that there is sustenance. The coronavirus shockwave has not only put the European market under trouble, China, which is one of the biggest manufacturer and exporter of licensed goods is equally hit by it and there have been delays in supplies since the outbreak begun.
“Reduced Chinese agricultural exports, including to Japan, are leading to shortages in some commodities. In addition, numerous auto producers are facing shortages in parts and other supplies that have been sourced in China,” CRS said.