Max Ventures & Industries Limited

Management Discussion & Analysis

Global Economy

In the last quarter of FY 20, parts of the world starting with China began being affected by the COVID-19 pandemic. The contagion spread across the world rapidly since then, inflicting high and rising human costs worldwide. Protecting lives and allowing health care systems to cope required isolation, lockdowns, and widespread closures to slow the spread of the virus. The health crisis has therefore had a severe impact on economic activity.

As a result of the pandemic, the global economy is projected to contract sharply by 3 percent in FY 20, much worse than during the FY 09 global financial crisis. In a baseline scenario, which assumes that the pandemic fades in the second half of FY 20 and containment efforts can be gradually unwound, the global economy is projected to grow by 5.4 percent in FY 21 as economic activity normalises, helped by policy support.

Countries urgently need to work together to slow the spread of the virus and to develop a vaccine and therapies to counter the disease. Humanity has been struck by pandemics historically and every time, economies have recovered from it eventually.

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Annual Report 2019 - 2020