Question : The Organization for Economic Co-operation and Development (OECD) recently projected that India may see 7.3% contraction if –
(a) Coronavirus strikes again
(b) unemployment rate hikes again
(c) poverty rate hikes again
(d) none of the above
Answer (a)
Related facts
Context
- The Organisation for Economic Co-operation and Development (OECD) is an intergovernmental economic organisation with 37 member countries,[ founded in 1961 to stimulate economic progress and world trade.
- OECD recently released its ‘Economic Outlook, June 2020’.
- OECD projected that India may see 7.3% contraction if coronavirus strikes again.
Indian economy
- The Organization for Economic Co-operation and Development (OECD) projected that India’s economy will contract 7.3 per cent in the current fiscal year if there is a second wave of the coronavirus (Covid-19) later this year.
- This is so far the steepest contraction that any agency has predicted for the country.
- If there is no second wave, the grouping of advanced countries — in its OECD Economic Outlook — expects the economy to contract 3.7 per cent during the year.
Global economy
- In the case of a double-hit by the pandemic, the OECD pegged global economic contraction at 7.6 per cent in 2020 and six per cent in case of a single-hit scenario.
- It said both scenarios are sobering, as economic activity cannot return to normal under these circumstances.