Global Economy Seen Suffering Worst Postwar Slump in 2020

Economy

Washington, June 8 (Jiji Press)--The global economy is expected to suffer the deepest slump this year since the end of World War II in the face of the novel coronavirus pandemic, the World Bank said Monday.

The world's gross domestic product will likely drop a real 5.2 pct in 2020, with the pandemic dealing a blow to trade and other economic activities, the Washington-based institution said.

Output of emerging and developing economies is expected to contract "for the first time in at least 60 years," the World Bank said, adding that per-capita income in these economies will fall sharply and this will cause millions of people to lapse into "extreme poverty."

The global economy is seen contracting for the first time since 2009, when the world struggled in the aftermath of the collapse of U.S. investment bank Lehman Brothers in September 2008. The estimated contraction compared with the World Bank's projection in January for 2.5 pct growth in world GDP.

The bank expects the world economy to turn up 4.2 pct in 2021. However, it also said that global GDP would plummet nearly 8 pct this year and its rebound next year would be weak, at 1.3 pct, if the impacts of the virus crisis last for an extended period of time.

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