According to Dun & Bradstreet’s newest Economy Forecast, the changes in consumer behaviour will decide the segments which can be possible to flourish after the pandemic is introduced underneath management.
“As countries are providing fiscal and monetary stimulus, it remains to be seen how much the loss in the economic activity gets recovered, to what extent the income inequality is being narrowed and the degree to which the productivity levels are restored. All these factors will help decide which economies will emerge out to be stronger post this crisis,” Dun & Bradstreet India Chief Economist Arun Singh mentioned.
Prime Minister Narendra Modi introduced a nationwide lockdown on March 24 to fight the coronavirus risk. It was later prolonged until May 3.
According to Dun & Bradstreet, the nationwide lockdown has led to a close to halt of all non-essential actions in the economic sector, and provide chains have been considerably disrupted with every day motion of vans falling to lower than 10 per cent of regular ranges.
“The lockdown has led to near halt in manufacturing units and left millions of short-term migrant and casual workers without jobs,” Singh mentioned.
Moreover, depressed global demand has led to a collapse in global commodity markets.
“The collapse in global demand is depleting the savings and increasing the debt levels of households, corporates and the governments and will most likely create a channel for a new round of debt crisis,” Singh mentioned.
He additional added that “as debt levels increase and loans turn bad, the banking sector might face challenges and this can cause a financial turmoil, further depressing the income and widening the inequality levels across the world including India”.
According to the Union Health Ministry, the loss of life toll due to the novel coronavirus pandemic rose to 1,147 and the quantity of circumstances climbed to 35,043 in the nation on Friday.
Meanwhile, the quantity of circumstances all over the world linked to the illness has crossed 32.57 lakh and the loss of life toll has topped 2.33 lakh.