Global economy tipped to contract by 5.2% this year

Global economy tipped to contract by 5.2% this year
  • Clock-gray 21:24
  • calendar-gray 08 June 2020

A new forecast from the World Bank predicts the global economy will contract this year by 5.2% and the declines will be more widespread than at any time in the last 150 years, APA reports citing BBC.

The World Bank’s president, David Malpass, said the coronavirus pandemic was jeopardizing decades of progress in the developing world. He said many developing countries were fighting on two fronts - the domestic outbreak of the disease and the economic spill-over from deep recessions in rich nations.

The Bank says developing economies as a group will decline this year, the first time that has happened in at least six decades. The report also says incomes per person will fall in a larger proportion of countries than at any time since 1870. The downturn, the Bank warns, will tip millions of people into extreme poverty.

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