Substantive chit

By: Barbados(chair, Caribbean community)

Major economic problems before the covid-19:

1) In the third quarter of 2019, growth in emerging market economies was weaker than expected
at the time of the October, mainly because of countries shocks weighing on domestic demand.
The advanced economy group slowed broadly as predicted. Consumer price inflation remained
problem in advanced economies, which led to softened further across most emerging market
economies. Weak demand lowered metals and energy prices, which kept a lid on headline
inflation.
2) Rising geopolitical tensions, notably between the Saudi Arabia and Russia -disrupted global oil
supply, hurt sentiment, and weaken already tentative business investment. Even, intensifying
social unrest across many countries—reflecting, in some cases, the erosion of trust in
established institutions and lack of representation in governance structures— disrupted
activity, complicated reform efforts and weak sentiment.
3) Instability in India was clearly visible considering there was down rate of GDP annual growth
percentage. This created instability in global market.

SOURCES:
1) https://www.imf.org/en/Publications/WEO/Issues/2020/01/20/weo-update-
january2020
2) https://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG?
end=2018&locations=IN&start=2016&view=chart