Global economy hit by deepest recession in 80 years despite massive stimulus measures - 0 views
blogs.worldbank.org/...pite-massive-stimulus-measures
globalization economy pandemics prediction worldbank
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Advanced economies will see economic activity shrink by 7% this year due to severe disruptions in domestic demand and supply, trade, and finance. Emerging market and developing economies (EMDEs) are expected to shrink by 2.5% in 2020, their first contraction as a group in at least 60 years. As a result, per capita incomes are expected to decline by 3.6%, which will tip millions of people into extreme poverty this year.
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the outlook remains highly uncertain as the downside risks are predominant, including a protracted pandemic, financial upheaval, and retreat from global trade and supply linkages
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In a scenario where an additional three months of stringent lockdown measures are required, global output would shrink by almost 8 percent in 2020. Despite additional fiscal policy support, vulnerable firms would exit, vulnerable households would sharply curtail consumption, and travel would remain deeply depressed
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a stronger outcome remains possible. The predictable removal of pandemic-control measures, coupled with the rapid and unprecedented global policy response can trigger a rapid recovery in confidence and employment, unleashing pent-up demand. However, even with these positive developments, the contraction in global output of 3.7 percent in 2020 would still be about twice as deep as during the global recession of 2009