The World Bank warned that the performance of the global economy will fall by 5.2% this year due to the coronavirus. On the other hand, it may revise the current forecasts even lower if the uncertainty about the pandemic and the restrictions on production and trade lasts longer, as the April forecast predicted a 3.0% contraction of the global economy for this year.
According to the Global Economic Outlook, it expects advanced economies to shrink by 7.0% this year while emerging markets are expected to see a 2.5% decline in gross domestic product.
In terms of GDP per capita, this year’s global recession is expected to be the deepest since 1945-46, when arms spending dried up after World War II.
The current downturn in the US economy would then be not only the steepest but also the shortest. The US economy entered a recession in February, ending a record period of growth. This was announced by the committee of the National Bureau of Economic Research (NBER), which determines the beginnings and ends of the recession in the USA. The US, like other countries, is now facing the negative economic effects of the coronavirus. According to the US Department of Commerce, the United States’ gross domestic product (GDP) fell by 4.8 per cent in the first quarter. An even sharper drop is expected in the second quarter, which could amount to over 20 per cent. But then growth could pick up.
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