The World Bank predicts that the Corona virus will cause global economic output to shrink by 5.2 percent in 2020.
According to Reuters, the World Bank has warned that its latest forecasts will be revised downward if pandemic uncertainty and corporate closures persist for longer periods of time.
In the latest report on global economic prospects, the World Bank said that advanced economies are expected to contract by 7.0 percent in 2020, while emerging market economies will contract by 2.5 percent, which is Its first contraction since 1960.
On the basis of per capita gross domestic product, the global downturn will be the deepest since the end of World War II.
The forecasts show more damage to the economy compared to estimates published by the International Monetary Fund in April, which predicted a global contraction of 3.0 percent in 2020.
The IMF plans to update its forecast on June 24, and the fund's executive director, Kristalina Georgieva, said it is very likely to include further cuts.
In its new forecast, the World Bank also increased its estimates of the number of people who will slide into extreme poverty due to the pandemic to between 70 million to 100 million from a previous estimate of more than 60 million.
The World Bank report for 2020 showed contractions by 6.1 percent for the United States and Japan, 9.1 percent for the Eurozone, 8.0 percent for Brazil and 3.2 percent for India. China is expected to maintain growth of 1.0 percent in 2020, down from a forecast in January of 6.0 percent.
