Dr Madhu Pillai
Though the global graph of COVID-19 is generally flattened and is trending to slope down in most parts of the world, it is still impacting everyday life. This has caused a severe economic disruption globally and the future is unpredictable though the real impact has slowly started to unfold. With the significant macroeconomic turbulence it has caused, there are convincing reasons to worry about a post-COVID world on the brink of global recession; probably the only question is, ‘when’. Quite obviously, most of the variables are directly or indirectly connected to unavoidable containment measures and their potential economic consequences. There is a brutal meltdown in the global financial markets. It is hard for any government to stop the economy from stalling and some may struggle to stop even falling. There is a big risk of breakdown in the credit line which in turn will lead to severe liquidity crisis and bankruptcies and finally employment losses. The article attempts to look at the impact of the drop in investments in new assets in the Oil & Gas and associated sectors on various levels.
Dr Madhu Pillai is an Advisor (Industry & Energy) with Centre for Public Policy Research. Views expressed are personal and need not reflect or represent the views of Centre for Public Policy Research