• The rising economic uncertainty resulting from the coronavirus pandemic has weakened the confidence of foreign investors that have pulled of an estimated $26bn from Asian countries.

With the ongoing coronavirus pandemic taking a toll on the global economy, foreign investors have pulled more than $16 billion out of India, which has lead to increasing concerns of a major economic recession.

As per the Congressional Research Center's latest report on global economic effects of Covid-19, the rising economic uncertainty resulting from the coronavirus pandemic has weakened confidence of foreign investors that have pulled of an estimated $26bn from Asian countries.

The report said that in the US, preliminary data suggest that the real GDP fell by 4.8 percent in the first quarter of 2020, which is the largest quarterly decline since the fourth quarter of 2008 during the global financial crisis, the CRS said.

Meanwhile, on the European side that is also one of the worst affected regions, over 30 million people in Germany, France, the UK, Spain, and Italy have applied for state support, while the first quarter 2020 data projected that the eurozone economy contracted by 3.8pc, the largest quarterly decline since the series started in 1995, it said.

As per the report, governments across the world have adopted monetary and fiscal policies to support economic activity, on the face of economic lockdowns created by the pandemic.

However, differences in policy implemented are straining relations between countries that promote nationalism and those that argue for a coordinated international response.