fredag 22. mai 2020

China and India have fueled global growth for years. That engine has stalled

Since the Great Recession following the 2008 financial crisis, China and India have powered much of the world's economic growth. Now, activity in both countries has plunged, raising the risk of a prolonged global slump. What's happening: China said Friday that it could not set a target for economic growth this year — a sign of how much uncertainty the coronavirus pandemic has caused the world's second largest economy.

China has set such targets for decades. Last year, Beijing targeted growth in the range of 6% to 6.5%. GDP grew 6.1%, its slowest pace in nearly 30 years. Meanwhile, Shaktikanta Das, the governor of the Reserve Bank of India, said Friday that the country's economy wouldn't grow at all in the current fiscal year, which ends in March 2021. The last time India's economy shrank over the course of a year was in 1979.