World Bank says global economy may shrink by 5.2%
The corona virus crisis could plunge the global economy into its biggest crisis in 150 years. The World Bank fears that the economy
New Delhi: The corona virus crisis could plunge the global economy into its biggest crisis in 150 years. The World Bank fears that the economy could slow to 5.2% this year.
"This is the first time since 1870 that an epidemic has created such a crisis," World Bank President David Malpass said in a global economic prospectus released on Monday. Developed economies are expected to shrink by 7% in 2020, according to a World Bank report.
This is the first time in the last 60 years that the growth of developing countries is expected to slow down. Not only that, per capita income is also expected to decline by 3.6%. It threatens to plunge millions into poverty.
Following this, the World Bank has forecast a growth of 3.1% in the financial year 2021-22. "Our first priority is to address the global health and economic crisis," the World Bank said in a report.