Govt stimulus won't offset economic loss: Report
March 30, 2020 15:55
Homeless queue up for food in New Delhi
The coronavirus pandemic is expected to dampen economic growth "substantially" in the South Asian region, including India, and though the central banks and governments have responded by providing stimulus, the measures will not come close to offsetting the loss of economic activity, says a report.
The Economist Intelligence Unit said dense living conditions, low hygiene awareness and overburdened healthcare systems make the South Asian region vulnerable to the worst effects of an outbreak.
"Chronic underinvestment in healthcare infrastructure and a low number of doctors and hospital beds in relation to the population mean that health systems will not be able to cope with the further toll, exacerbating the spread of the virus and the death rate," EIU said.
India has imposed a three-week long nationwide lockdown, the most far-reaching measure undertaken by any government, to curb the spread of the coronavirus pandemic that has killed at least 29 people in the country so far.
According to EIU, the preventive measures taken by governments will curtail the movement of people and lead to a demand-side shock, while the closure of factories and businesses will result in a supply-side shock, and the subsequent lay offs will exacerbate the demand shock. -- PTI
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