The outbreak of the deadly coronavirus has put the world to a standstill. So far, more than 2 lakh people have been tested positive and around 1 lakh lives have been claimed by the deadly virus, globally. The whole world is under a lockdown. It has affected every sector of the society. And we can’t ignore the fact that the outbreak of this deadly pandemic had a significant impact on the economy.
Recently actor Ajaz Khan predicted a loss of Rs 17,78,000 crore due to coronavirus and also said that the Gross Domestic Product (GDP) will be 0%. Khan took to Twitter and wrote, “17,78,000 crore Ka loss hone jaa raha hai. GDP 0% ho sakta hai.”
Soon, Twitteratti started slamming him for his tweet. Have a look at some reactions:
For the unversed, Gross Domestic Product (GDP) is the monetary value of all finished goods and services made within a country during a specific period. GDP provides an economic snapshot of a country, used to estimate the size of an economy and growth rate. GDP can never be zero as every country produces (and exports) some or the other commodity. However, if a country imports each and every commodity, the GDP can be zero.
Meanwhile, as India extended the nationwide lockdown till May 3, Barclays cut its growth forecast for the country to 0% for calendar year 2020 from its earlier projection of 2.5%, holding that the economic fallout will be worse than it had earlier estimated.
“While India’s COVID outbreak has not officially reached the community transmission stage, we believe the existing restrictions on movement are causing much more economic damage than anticipated. Despite being characterised as essential sectors, the negative impact of the shutdown measures on the mining, agriculture, manufacturing and utility sectors appears higher than we had expected,” it said in a report.
Barclays said once the lockdown is over, the pace of recovery will be contingent on policy support by the government.