The World Bank expects the global economy to decline 5.2% this year
Xinhua News Agency, Washington, June 8 (Reporter Xu Yuan Gao Pan) The World Bank’s latest Global Economic Outlook report released on the 8th said that due to the impact of the new crown epidemic, the global economy is expected to decline by 5.2% in 2020, which will be World War II The worst economic recession since.
The report believes that due to the impact of the new crown epidemic and the economic "shutdown" brought about by the prevention and control measures, the global economy will fall into a serious contraction in 2020, and the per capita income is expected to decrease by 3.6%. This year will be the year with the largest number of economies that have experienced a decline in per capita output since 1870. Among them, economies that rely heavily on global trade, tourism, commodity exports, and external financing have been hit hardest by the epidemic. In addition, the vulnerability of emerging markets and developing economies will also be amplified by external shocks.
The report predicts that due to severe disruptions in domestic demand, supply, trade and finance, the economy of advanced economies will shrink by 7% in 2020. Among them, the economies of the United States, the euro area, and Japan will shrink by 6.1%, 9.1%, and 6.1%, respectively. The economies of emerging markets and developing economies will decline by 2.5%. However, the Chinese economy is expected to achieve 1% growth.
According to the assumptions of advanced economies in the middle of this year, emerging markets and developing economies later this year, the epidemic situation subsided, the World Bank predicts that the global economy will resume growth of 4.2% in 2021. Among them, developed economies grew by 3.9%, and emerging markets and developing economies grew by 4.6%.
The report quoted the deputy governor of the World Bank, Geila Pazarbasheolu, as saying that this unfavorable economic prospect is thought-provoking, and the new crown crisis may leave permanent “scars” and pose a major global challenge. Right now, the first task facing the world is to respond to health and economic emergencies. After that, the international community must unite to promote economic recovery in order to prevent more people from falling into poverty and unemployment.