The global economy is set to nosedive into the worst recession!
The World Bank has announced that global economy is all set to go into the worst ever recession, the likes of which was last seen way back in the time of WWII.
Ayhan Kose, World Bank Prospects Group Director, said:
“The current episode has already seen by far the fastest and steepest downgrades in global growth forecasts on record. If the past is any guide, there may be further growth downgrades in store, implying that policymakers may need to be ready to employ additional measures to support activity.”
The global economy, has taken a nosedive into a very harsh contraction and it is expected to shrink 5.2% in the year 2020, as a result of the massive destruction brought about all across the globe, due to the coronavirus pandemic and the resultant measures of lockdowns all over the globe, that were adopted, in attempts to stop the spread of the New Coronavirus.
World Bank President David Malpass said:
“The speed and depth with which it has struck, suggests the possibility of a sluggish recovery that may require policymakers to consider additional interventions.”
Due to there being a severe disruption in finance, trade and domestic demand and supply, it is expected that economic activity in advanced economies will shrink by as much as 7%, in the year 2020.
It is expected that in the year 2020, EMDEs (Emerging Markets and Developing Economies), could shrink by 2.5%.
It has been predicted that per capita incomes would fall by 3.6%, which means that millions of people all over the globe, will be pushed into extreme poverty.
Ceyla Pazarbasioglu, World Bank Group Vice President for Equitable Growth, Finance and Institutions, said:
“This is a deeply sobering outlook, with the crisis likely to leave long-lasting scars and pose major global challenges. Our first order of business is to address the global health and economic emergency. Beyond that, the global community must unite to find ways to rebuild as robust a recovery as possible to prevent more people from falling into poverty and unemployment.”
Indeed, the global economy is set to nosedive into the worst recession!