Journal of Economics and Economic Education Research (Print ISSN: 1533-3590; Online ISSN: 1533-3604)

Abstract

Wither Urban Economy

Author(s): Himmat Singh Ratnoo

The average decline in Gross Domestic Product (GDP) for the six months since the onset of the covid-19 pandemic has been 12 percent for the 60 countries for which is data are available now. Of course, this average hides many interesting variations. For instance, for India which is an important emerging economy from the developing world, the GDP declined 24 percent which is double the average fall. On the other hand, China has started recovering. However, if we assume this trend of 12 percent decline to be a good estimate for the average decline of output in the world economy, there can be no doubt it being an unprecedented recessionary phase. It is well-established by now that majority of the world output takes place in urban or peri-urban areas and that is why the world has been fast turning urban. That way the economic decline is essentially an urban decline, with agriculture being affected the least. It is no surprise also that the environmental crisis that preceded the pandemic is also a great crisis by the city, of the city and for the city.