COVID-19: Global economy expected to shrink by 5.2% in 2020

… emerging and developing economies to suffer most

By Chioma Obinagwam

The swift and massive shock of the coronavirus pandemic and shutdown measures to contain it will plunged the global economy into a severe contraction by 5.2 percent.

Confiance News gathered from the World Bank forecasts.

“The baseline forecast envisions a 5.2 percent contraction in global GDP in 2020—the deepest global recession in decades. Per capita incomes in most emerging and developing economies will shrink this year,” the report revealed.

While the ultimate outcome is still uncertain, the report disclosed that the pandemic will result in contractions across the vast majority of emerging market and developing economies (EMDEs).

“It will also do lasting damage to labour,” it says.

It noted that the pandemic highlights the urgent need for policy action to cushion its consequences, protect vulnerable populations, and improve countries’ capacity to cope with similar future events.

The World Bank also pointed the importance of addressing the challenges posed by informality and limited safety nets and undertake reforms that enable strong and sustainable growth.

However, it stated that in order to attenuate the near-term economic losses, once the crisis abates, Global coordination and cooperation will be critical.

Confiance News recalls that the World Health Organization (WHO) on December 31, 2019, through information from Wuhan Municipal Health Commission, China, reported a cluster of cases of pneumonia in Wuhan, Hubei Province. A novel coronavirus was eventually identified.

The pandemic, according to data mined by Johns Hopkins University, is responsible for over 400,000 deaths globally.