World Bank forecasts worst recession in 8 decades amid pandemic

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The global economy will contract the most since World War II this year and emerging nations’ output will shrink for the first time in at least six decades due to the COVID-19 pandemic, reducing incomes and sending millions of people into poverty, the World Bank said.

Global gross domestic product will probably shrink 5.2 percent in 2020, the Washington-based development organization said in its semi-annual Global Economic Prospects report Monday. Emerging and developing economies will shrink 2.5 percent, their worst performance in data that starts in 1960, it said.

Per-capita output will contract in more than 90 percent of countries, the biggest share since 1870. This decline may push 70 million to 100 million people into extreme poverty, Ceyla Pazarbazioglu, the World Bank’s vice president of equitable growth, finance and institutions, told reporters by phone.

The forecast for a global contraction compares with a January projection for a 2.5 percent expansion and would be the fourth-deepest recession of the past 150 years after 1914, 1930-32 and 1945-46, the World Bank said.

“This is the first recession since 1870 triggered solely by a pandemic, and it continues to manifest itself,” Pazarbazioglu said. “Given this uncertainty, further downgrades to the outlook are very likely.”

Advanced economies will shrink 7 percent, led by a 9.1 percent contraction in the euro area, the lender said.

Emerging economies with limited health-care capacity, deeply integrated global value chains, heavy dependence on foreign financing and extensive reliance on international trade, commodity exports and tourism are likely to be the hardest hit.

The economy will rebound in 2021, growing 4.2 percent, the lender said.

The World Bank presents two alternative scenarios. In one, where the COVID-19 outbreak persists for longer than expected, requiring the continuation or reintroduction of restrictions on movement, the global economy would shrink almost 8 percent this year. If control measures can be largely lifted in the near term, the contraction would be 4 percent — still more than twice as deep as the global financial crisis of 2009.

https://www.pressherald.com/2020/06/08/the-latest-swedens-pm-rebuked-as-coronavirus-deaths-ignite-political-anger/

[PunkTheFunk 125,719]

2009 Recession: Who are you?

2020 Recession: I'm you, but stronger

[lifeasgeorge 9,427]

This really is the worst time for us to be in our early 20's huh

[Itsbrenda 2,983]

17 minutes ago, lifeasgeorge said:

This really is the worst time for us to be in our early 20's huh

Early 20s for me was the Great Recession and now I’m 29 and getting this. 
 

fun. 

[TropicOfCANCER 6,292]

6 minutes ago, Itsbrenda said:

Early 20s for me was the Great Recession and now I’m 29 and getting this. 
 

fun. 

Sammeee.

[Emvee 8,845]

16 minutes ago, Itsbrenda said:

Early 20s for me was the Great Recession and now I’m 29 and getting this. 
 

fun. 

Hitting millennials down as we are about to get back up 

[Economy 52,919]

15 minutes ago, Itsbrenda said:

Early 20s for me was the Great Recession and now I’m 29 and getting this. 
 

fun. 

Yeah our generation. I graduated shortly after the collapse now when I enter my working age prime (late 20s) I get this. How awesome

 

At least I do have a decent laying job I found but it's not what I ideally wanted and it's harsh. It's a be thankful you have a job in this economy kind of situation

[Guest]

So does a recession mean that people will go into poverty cause things will cost more or does it mean companies will fire people because we aren’t spending enough on certain stuff to keep them open?

[Mirrion Rizzons 12,732]

luckily I'm still in my late teens then I guess