The World Bank has just confirmed what many of have all been fearing to happen since this Pandemic got underway, the World Economy is in for the biggest recession since World War 2.
The #COVID19 pandemic shock is expected to cause the global economy to contract 5.2% this year—the deepest recession since WWII. The speed of forecast downgrades suggests a further downward revision is possible. https://t.co/BOwLp8CFCt #WBGEP2020 pic.twitter.com/L0S0kX29Hy— World Bank (@WorldBank) June 8, 2020
Its expected that emerging markets and developing economies are due to shrink by 2.5%, meanwhile per capita incomes are forecast to fall by 3.6% pushing millions of people into poverty.
The hardest hit will likely be those countries where the pandemic has been most severe and where there is a heavy reliance on global trade, tourism, commodity exports and external financing, the report said.
World Bank Prospects Group Director, Ayhan Kose said in a statement:
“The COVID-19 recession is singular in many respects and is likely to be the deepest one in advanced economies since the Second World War, and the first output contraction in emerging and developing economies, in at least the past six decades”
I’d tend to argue that this economic recession will actually be worse than what was endured following World War II, but I guess only time will tell. It’s going to get rough out there, that you can be sure of!
Please leave your comments below, have you lost your job, are you feeling the strain from the backlash of the Coronavirus measures yet?