The World Bank expected the world economy to contract by 5.2% this year, at the worst rate since World War II, as a result of the "rapid and severe shock" that the economy was exposed to under the pandemic.
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The World Bank expects the worst global downturn since World War II because of Corona
08.06.2020 | 21:13 GMT
The World Bank expects the worst global downturn since World War II because of Corona
AFP
The World Bank expected the world economy to contract by 5.2% this year, at the worst rate since World War II, as a result of the "rapid and severe shock" that the economy was exposed to under the pandemic.
The World Bank said in its latest report, "Global Economic Prospects," that the largest group of economies in the world since 1870 will see declines in average per capita output.
It is expected that the average per capita income will decrease by 3.6%, to reach "extreme poverty millions of people" this year.
The bank expected economic activity in the advanced economies to shrink by 7% this year due to the severe turbulence in domestic demand and supply, trade and finance.
And emerging and developing economies will see a 2.5% contraction this year, the first contraction for them as a group in at least 60 years, according to the bank.
The economy in the United States and Japan may contract by 6.1% this year, while output in the euro area shrinks by 9.1% as the outbreak of the pandemic severely damaged economic activity.
The bank warned of disturbances in education services and the lack of access to primary health care against the backdrop of the pandemic, which "could have long-term effects on human capital development."
"These expectations are extremely worrying, and the crisis is likely to leave long-running scars and create massive global challenges. Our first concern is to address the global health and economic emergency," said Gila Bazarbasioglu, World Bank Vice President for Equitable Growth, Finance and Institutions.
Within the framework of forecasts of the basic scenario that the pandemic is supposed to recede by the middle of this year, the global economy will recover from the indirect negative repercussions of the epidemic during the second half of this year, and the financial market imbalances will not last for long.
The global economic growth rate is expected to recover to 4.2% in 2021, with the advanced economies growing by 3.9% and the emerging and developing economies growing by 4.6%.
According to the deteriorating scenario, global output may fall by up to 8% in 2020, and then witness a slight recovery in the following year, registering growth of just over 1%, with output in emerging market economies and developing countries shrinking by 5% this year.
Source: RT
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