Economic impact of Covid-19 is huge, world won't be the same: PM Modi

Remarks come in the backdrop of rating agencies revising growth forecasts as the second wave has impacted economic recovery and increases the risk of long-term scarring

The economic impact of the Covid-19 pandemic is “huge” and the world will not be the same after the virus recedes, Prime Minister Narendra Modi said Wednesday.

The once-in-a-lifetime pandemic has brought tragedy and suffering at the doorstep of many, the prime minister said. “The pandemic has impacted every nation. The economic impact is huge, as well,” he said while delivering the keynote address at the Vesak Global celebrations.

The prime minister’s remarks came against the backdrop of several rating agencies revising their growth forecasts for India downwards, with the second wave of the Covid-19 pandemic severely impacting economic recovery, besides increasing the risk of long-term scars. Recently, the International Monetary Fund (IMF) said it would revisit the growth forecast for India, and the global economy in July.

The economic fallout of the second wave of the pandemic is expected to be severe as suggested by high-frequency indicators, such as mobility trends, auto sales, and rising unemployment rates.

Modi also said that in times to come, events would be remembered as either pre- or post-Covid. However, the past year has brought many changes, such as the development of vaccines and a better understanding of the coronavirus, which strengthen the strategy to fight and defeat the virus, he said.

“The emergence of vaccines within a year of the Covid outbreak shows the power of human determination and tenacity,” he said.

Besides the Covid-19 pandemic, climate change is a major challenge that humanity faces, Modi said, adding India is among the few large economies which are on track to meet their Paris Agreement targets.