The world economy needs years to recover to the level it was before the pandemic

02.07.2020 08:38
Recovery of global GDP to the level that preceded the pandemic, will take years. This opinion was expressed on Wednesday by the President of the world Bank (WB), David Malpas.
"Global GDP will not recover to its previous level for many years. In terms of employment and jobs, the losses will be long-lasting," Malpas said during a video conference in Washington.
According to him, the pandemic has exacerbated the problem of inequality in the world, in particular, he noted that "programs aimed at stimulating the economy in developed countries usually benefit representatives of the upper income distribution scale."
Last week, the international monetary Fund (IMF) lowered its April forecast for global GDP, which is expected to fall by 4.9% this year, but recover and grow by 5.4% next year. According to IMF experts, due to the economic consequences of the pandemic, the GDP of advanced economies will fall by 8% in 2020, which is 1.9 p.p. lower than in the April forecast. A deep economic downturn this year is expected in the United States (GDP fell by 8%), Japan (5.8%), the United Kingdom (10.2%), France (12.5%), Italy and Spain (12.8% each). The IMF expects growth in advanced economies to increase by 4.8% in 2021. GDP of emerging market countries will fall by 3% this year, and it is expected to increase by 5.9% next year.

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