American Investment pioneer Goldman Sachs has predicted that India’s GDP could rise 20 per cent after the lockdown. The predictions by Goldman Sachs, stated in The Economist, have made claims about the third quarter 2020.
The GDP, which would fall in the second quarter at an annualised quarterly rate of 45 per cent, would rebound by 20 per cent in the third quarter if coronavirus lockdowns are lifted, Goldman Sachs predicted earlier this week.
“Lockdowns can only be temporary,” the report read. “This is because it is becoming clear how costly they are especially in poor countries. Part of the price is economic.”
The economies around the world have been slowed down due to the unprecedented lockdown imposed by several countries.
“Absa Bank has calculated that the economy of South Africa could shrink at an annualised rate of 23.5 per cent in the second quarter, The Economist reported.
In sub-Saharan Africa, an individual in the lowest income group has only a 4 per cent chance of receiving social assistance from the government in normal times. A combination of Covid-19 and lockdowns could put up to 420 million people into absolute poverty, which is defined as having to live on less than USD 1.90 a day.
This would increase the total by two-thirds and set back the progress against poverty by a decade, the report said.
The newspaper also explains the far-reaching consequences of having longer lockdowns that not only brings the economies to a grinding halt but also cost lives if people do not have access to essential services.
The World Health Organisation has warned that the coronavirus pandemic threatens vaccination programmes. If such initiatives are stopped in Africa, 140 children could lose their lives for each Covid death averted.