Foreign investors pull out USD 26 billion from Asian economies; USD 16 billion from India
Washington: Amidst the global economic recession due to the coronavirus pandemic, foreign investors have pulled out an estimated USD 26 billion from developing Asian economies and over USD 16 billion out of India, according to a Congressional report.
Foreign investors have pulled an estimated USD 26 billion out of developing Asian economies and more than USD16 billion out of India, increasing concerns of a major economic recession in Asia, independent Congressional Research Center said in its latest report on global economic effects of COVID-19.
In Europe, over 30 million people in Germany, France, the UK, Spain, and Italy have applied for state support, while first quarter 2020 data indicates that the eurozone economy contracted by 3.8 per cent, the largest quarterly decline since the series started in 1995, it said.
In the US, preliminary data indicated that the GDP fell by 4.8 per cent in the first quarter of 2020, the largest quarterly decline since the fourth quarter of 2008 during the global financial crisis, the CRS said.
According to CRS, the pandemic crisis is challenging governments to implement monetary and fiscal policies that support credit markets and sustain economic activity, while they are implementing policies to develop vaccines and safeguard their citizens.
In doing so, however, differences in policy approaches are straining relations between countries that promote nationalism and those that argue for a coordinated international response.
Differences in policies are also straining relations between developed and developing economies and between northern and southern members of the eurozone, challenging alliances, and raising questions about the future of global leadership, the report said.
While almost all major economies are shrinking as a result of coronavirus, only three countries China, India, and Indonesia are projected to experience small, but positive rates of economic growth in 2020, it said.
The IMF in its recent report argued that recovery of the global economy could be weaker than projected as a result of lingering uncertainty about possible contagion, lack of confidence, and permanent closure of businesses and shifts in the behaviour of firms and household, the CRS said.
It said public concerns over the spread of the virus have led to self-quarantines, reductions in airline and cruise liner travel, the closing of such institutions as the Louvre, and the rescheduling of theatrical releases of movies, including the sequel in the iconic James Bond series (titled, No Time to Die ).
School closures are affecting 1.5 billion children worldwide, challenging parental leave policies. Other countries are limiting the size of public gatherings.
The drop in business and tourist travel is causing a sharp drop in scheduled airline flights by as much as 10 per cent; airlines are estimating they could lose USD 113 billion in 2020 (an estimate that could prove optimistic given the Trump Administration's announced restrictions on flights from Europe to the United States and the growing list of countries that are similarly restricting flights).
Airports in Europe estimate they could lose USD 4.3 billion in revenue due to fewer flights, it said.
Industry experts estimate that many airlines will be in bankruptcy by May 2020 under current conditions as a result of travel restrictions imposed by a growing number of countries.
The loss of Chinese tourists is another economic blow to countries in Asia and elsewhere that have benefitted from the growing market for Chinese tourists and the stimulus such tourism has provided, it said.
The CRS said the decline in industrial activity has reduced demand for energy products such as crude oil, causing prices to drop sharply, which negatively affects energy producers and electric vehicle manufacturers, but generally is positive for consumers and businesses.
Further, disruptions to industrial activity in China reportedly are causing delays in shipments of computers, cell phones, toys, and medical equipment.
The factory output in China, the United States, Japan, and South Korea all declined in the first months of 2020.
Reduced Chinese agricultural exports, including to Japan, are leading to shortages in some commodities. In addition, numerous auto producers are facing shortages in parts and other supplies that have been sourced in China, CRS said.
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About 69 per cent turnout recorded in Karnataka's first phase of polling
Bengaluru, Apr 26: Voting was held on Friday for the first phase of Lok Sabha polls in Karnataka, in 14 constituencies, with an estimated over 69 per cent turnout, as the Congress and BJP locked horns again on the electoral battleground in less than a year.
According to poll officials, an approximate 69.23 per cent of the voters cast their ballot.
"This is tentative. It will vary slightly based on the detailed reports of the PRO (Presiding Officer)," an official said.
In the 2019 Lok Sabha polls, the same 14 segments in the first phase had recorded a turnout of 68.80 per cent.
Out of 14 segments that went to polls on Friday, the highest turnout of 81.48 per cent was recorded in Mandya, followed by Kolar 78.07 per cent, and the least 52.81 per cent in Bangalore Central.
The turnout was 54.42 per cent in Bangalore North, and 53.15 per cent in Bangalore South, amid indications of continued voter apathy in the city.
Bangalore Rural that is witnessing a tough contest between Congress' D K Suresh, MP and brother of Deputy Chief Minister D K Shivakumar, and Dr C N Manjunath, a noted cardiologist and son-in-law of former PM H D Deve Gowda, on a BJP ticket, has recorded 67.29 per cent.
Karnataka Chief Electoral Officer Manoj Kumar Meena told PTI that barring an incident in Chamarajanagara district, the election process was peaceful in the state.
The Electronic Voting Machines were destroyed at a polling station in Indiganatha village in Chamarajanagara district during a clash between two groups of people over whether to vote or not in the Lok Sabha elections, bringing the poll process to a halt.
According to the district administration, the villagers had earlier in the day decided to boycott the polls citing lack of adequate infrastructure development. However, after assurances and efforts by the local officials, a section of them agreed to vote, while the other was keen to boycott leading to clashes between them during which they destroyed EVMs, and also indulged in stone-pelting.
Reacting to the incident, Meena said, "Tomorrow, the returning officer in the presence of the observer will do the scrutiny and then they will recommend (further course of action.)"
A total of 247 candidates -- 226 men and 21 women -- are in the fray for the first phase covering most of the southern and coastal districts, where more than 2.88 crore voters were eligible to exercise their franchise in 30,602 polling stations.
Friday's elections witnessed a straight fight between the ruling Congress and the BJP-JD(S) combine unlike the Assembly elections in May last year which witnessed a triangular contest among the three parties.
In the first phase, the Congress contested in all 14 seats, while BJP fielded nominees in 11 and its alliance partner JD(S), which joined the National Democratic Alliance in (NDA) in September last year, in three -- Hassan, Mandya and Kolar.
Besides the three, the segments where elections were held on Friday are: Udupi-Chikmagalur, Dakshina Kannada, Chitradurga, Tumkur, Mysore, Chamarajanagar, Bangalore Rural, Bangalore North, Bangalore Central, Bangalore South and Chikkballapur.
In the 2019 Lok Sabha polls, Congress and JD(S), which were in alliance and ruling the state back then, had secured just one seat each in these 14 segments. The BJP had won in 11 and ensured the victory of a party supported independent candidate in Mandya.
Other than Suresh and Manjunath, the latter's brother-in-law and JD(S) state President H D Kumaraswamy from Mandya, erstwhile Mysuru royal family scion Yaduveer Krishnadatta Chamaraja Wadiyar from Mysore, from the BJP, are among the prominent candidates in the fray in the first phase.
Also in the contest are BJP MP Tejasvi Surya from Bangalore South against Minister Ramalinga Reddy's daughter Sowmya Reddy of Congress, and Union Minister Shobha Karandlaje on BJP ticket from Bangalore North against former Indian Institute of Management Bangalore professor M V Rajeev Gowda of Congress.
Chief Minister Siddaramaiah said there is no "Modi wave" in Karnataka, but there is one in favour of Congress government's guarantee schemes, as he claimed his party will win about 20 out of total 28 Lok Sabha polls in the state.
Asked as to how many seats the Congress will win out of 14 seats in the first phase, the chief minister said, "it cannot be said correctly as of now, as it is a secret ballot, but we will win majority seats."
Shivakumar, who is also the state Congress president, said he has got reports that the party will win more than 20 seats in Karnataka.
"In the first phase, Congress will win 10 of the 14 seats that went to polls today. This is not astrological predictions; this is based on political acumen and data," he said.
Kumaraswamy said the outcome of the elections will be in favour of the NDA alliance, of which his party JD(S) is a part.
Thanking voters, state BJP chief BJP Vijayendra said: "It is our unwavering belief that your support for the security and development of India, will give strength for the Modi-led government to come to power once again in the country."
Long queues were seen at polling booths since 7 am.
Former Prime Minister H D Deve Gowda, Siddaramaiah, Shivakumar, Kumaraswamy and Finance Minister Nirmala Sitharaman also exercised their franchise.
