COVID Crisis Causes Significant Economic Losses for BRICS
The Reserve Bank of India published the bulletin prepared by the BRICS Contingent Reserve Arrangement (CRA) Research Group with members of the BRICS central banks. India is the current president of the BRICS. The ARC Research Group was established to enhance the research, economic analysis and surveillance capacity of the BRICS.
The crisis has affected all countries indiscriminately, adding that the BRICS were no exception as they have also been severely affected by the pandemic and are trying to recover from it, according to the bulletin. However, there is significant heterogeneity among the BRICS in the duration and intensity of the pandemic.
The crisis induced by the COVID-19 pandemic has resulted in significant economic losses and weakened the social fabric of BRICS countries by amplifying the risks of unemployment, poverty, gender disparity and migration, according to the published BRICS Economic Bulletin recently. The BRICS group includes Brazil, Russia, India, China and South Africa.
“While China could largely contain the spread of the debilitating infection, other BRICS countries have witnessed multiple waves of infection,” he said.
The COVID crisis has resulted in significant economic losses and weakened the social fabric of the BRICS by amplifying unemployment, poverty, gender disparities and migration risks, the bulletin notes.
According to the bulletin, there is compelling evidence of a BRICS recovery after the pandemic-induced deep contraction in 2020. However, the recovery shows significant divergences among BRICS members.
“China has been able to effectively control infections, which has contributed to its rapid recovery. While the pace of economic growth is gradually accelerating in India and Brazil, Russia and South Africa have yet to regain their pre-pandemic levels of economic activity, ”he said. declared.
Additionally, the bulletin states that since the threat of COVID remains unchanged in the BRICS, it is difficult to estimate the strength of this recovery.
“Going forward, the pace and effectiveness of vaccination will be the most important determinant of economic recovery,” he said.
According to the bulletin, if the growth momentum in the BRICS countries, especially China, slows, the global recovery could also see additional headwinds to its growth momentum.
Besides the uncertainty over COVID, the tightening of global financial conditions and the persistent economic and structural changes resulting from the crisis are other factors of concern in the BRICS countries, he said.
The bulletin also said that BRICS countries should seize any opportunities that may emerge amid the crisis by planning and working towards a bright post-pandemic future.
Fibre2Fashion Information Office (DS)