|DWorld Bank predicts Global Economy will shrink 5.2% in 2020 due to coronavirus pandemic: Highlights with Details|
World Bank predicts Global Economy will shrink 5.2% in 2020 due to coronavirus pandemic: Highlights with Details
According to the World Bank, the global economy, which has plunged into a severe contraction, will shrink by 5.2 per cent this year due to the massive shock of the coronavirus pandemic. Growth in India is expected to contract by 3.2 percent in 2020.
The latest estimates of World Bank has a more bearish view on global growth than ever before perhaps after World War 2. The global growth is expected to shrink by 5.2 and a smart recovery in 2021 with 4.2 percent growth in 2021.
USA, Japan, Barazil and Russia is expected to contract between 6 and 8 percent while Indian economy is expected to shrink by 3.2 percent. Year 2021 is expected to have a softer to smart recoveries in select economies. India ,USA and China still are best placed to witness smart growth in 2021.
World Bank president David Malpass said that current recession is the first after 1870 to be triggered solely by pandemic. The multilateral lending institution took note of measures taken by the Indian government, including spending on health care and wage support.
The current projections suggest the COVID-19 recession will involve a decline in global per capita GDP by 6.2%, making it the deepest global recession since 1945-46 (World War-II), and more than twice as deep as the recession associated with the global financial crisis in 2008.
The World Bank President has warned that the impact may last for decade and will impact 60 million who have to live below 1 dollar day income level.(inp:dd)