The World Bank says the global economy will shrink by 5.2% in 2020 due to the swift and massive shock of the Coronavirus pandemic and shutdown measures used to contain it.
This is contained in the Bank’s June 2020 Global Economic Prospects released on Monday in which it said the forecasts of the year would represent the deepest recession since World War II, with the largest fraction of economies experiencing declines in per capita output since 1870.
The Bank added that economic activities among advanced economies is anticipated to shrink 7% in 2020 as domestic demand and supply, trade, and finance have been severely disrupted while emerging market and developing economies are expected to shrink by 2.5% in 2020. The global financial institution also added that per capita incomes are expected to decline by 3.6%, which will tip millions of people into extreme poverty later this year.
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The blow it said is hitting hardest in countries where the pandemic has been the most severe and where there is heavy reliance on global trade, tourism, commodity exports, and external financing.
(Editor: Terverr Tyav)
