the world Bank (WB) has revised the sharp deterioration in the Outlook for the global economy.
As follows from the June report of the world Bank, «the coronavirus pandemic and quarantine measures to contain it have had a sudden and massive shock effect on the world economy, plunging her into a deep recession,» reports RIA «Novosti».
Bank Experts predict that this year the global GDP will shrink by 5.2%. «This recession will be the deepest since the Second world war, and the decline in production per capita will reach the greatest percentage of countries since 1870», — emphasized in the WB.
However, in 2021 is expected to recover, the world economic growth may reach 4.2 percent, not 2.6 percent as expected in January.
the world Bank does not exclude that the global measure of income per capita will decrease by 3.6%, which would plunge millions of people into extreme poverty. «This is hardest on those countries where the flow of the pandemic was particularly severe, and States heavily dependent on global trade, tourism, commodity exports and external financing. Although the magnitude of the shocks in different regions are different, we all have EM and DE has its weaknesses, which are exacerbated by external shocks. Moreover, it is highly likely that the disruption of access to schooling and primary health care will have long-term negative consequences for human capital development», — quotes «Finmarket» extracts from the report.
we also Recall that on April 14 the international monetary Fund (IMF) presented a report which predicted the fall of the world’s GDP in 2020 to 3% or more due to pandemic COVID-19. Also in January, before the appearance of the signs of a pandemic, the IMF slightly downgraded its assessment on the global economy, but expected growth of GDP to 3.3% by the end of this year. As for the forecasts for individual countries, the Fund expects the fall of the U.S. economy in 2020 by 5.9% compared to the year 2019. China predicted a sharp slowdown of GDP growth by 4.8 percentage points to 1.2%. The IMF also suggests that the Eurozone economy because of the coronavirus will fall in 2020 by 7.5%.
Earlier, on 27 March, the managing Director of the IMF Kristalina Georgieva stated that the world economy went into recession. «Now it is clear that we entered the recession, such as bad or even worse than in 2009» — said the head of the IMF during the video briefing. However, she is expecting a recovery of the global economy in 2021, but if «will be able to cope with the virus around the world and prevent problems with liquidity».
we Add that the outbreak of pneumonia caused by a coronavirus infection (COVID-2019), was formally recorded in December 2019 in the Chinese city of Wuhan. March 11, 2020, the world health organization (who) officially recognized the situation with coronavirus pandemic. To date, cases of infection were recorded in almost 200 countries and regions of the world. In General, the number of infected COVID-2019 exceeded 7 million people died more than 402 thousand. The pandemic has had devastating effects on the world economy. Under the powerful kick hit many industries, including transport, tourism, hospitality, automotive, construction, retail, and entertainment.
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