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State of the Economy 2020-21: A Macro View 17

Aggregate Order Backlog of Industrial &
Industrial and Infrastructure Companies
Infrastructure Construction Companies

Hotels & Tourism, Wholesale & Retail Trading

Source: Compiled from various sources

DISRUPTION OF GLOBAL ECONOMY BY THE PANDEMIC

1.17 As was evident from the earlier section, the pandemic raised unprecedented health challenges
on a global scale and posed unique policy dilemmas. Since 2018, the growth momentum in
global output was on a weakened footing owing to various factors like trade tensions, political
instability, slowed demand and reduction in industrial activity. COVID-19 pandemic accentuated
the deceleration by causing severe demand and supply disruptions. Economic activity has been
belaboured by reduced mobility, owing both to official restrictions and private decisions; uncertainty
regarding the post-pandemic economic prospects and policies has impacted investment; disruptions
in education have decelerated human capital accumulation; concerns about the viability of global
value chains; and the adverse impact on international trade and tourism.
1.18 The month of April 2020 became the month of “Global Lockdown” with world economic
activity coming to a standstill – leading to a steep fall in output during second quarter of 2020.