The Global Economy Will Contract by 5.2 percent in 2020

  • International
  • 9 June 2020

The World Bank expected the global economy to shrink by 5.2% in 2020, confirming that the impact of the Coronavirus (Covid-19) pandemic was "rapid and massive" despite the unprecedented financial assistance. Indicating that the downturn will be "the worst" since the World War II, expecting that extreme poverty to affect about 100 million people because of Covid-19.

This figure is higher by 40 million people threatened by poverty, compared to previous World Bank estimates that indicated that 60 million people are threatened by extreme poverty due to the pandemic.

David Malpass, President of the World Bank, predicted that the Covid-19 pandemic would lead to a "massive global recession", most likely to affect poor and vulnerable countries.

International and research institutions in the world have issued many expectations regarding the impact of the Corona virus on the global economy and the economies of the major countries. While Oxford Economics expected the global economy to hit a severe but short-term recession, while Europe is expected to be the most affected.

The International Monetary Fund expected a recession worse than the 2008 recession, but recovery begins next year. The IMF has put a trillion dollars at the disposal of countries and 80 countries requested urgent funding.

According to the Organization for Economic Cooperation and Development, the negative repercussions of Corona will remain for years. Indicating that the number of troubled companies and lost jobs is not yet clear.

Source ( website, Edited)