This archive report was first published on 9 June 2020.
According to the World Bank's June 9, 2020, Global Economic Prospects report, the COVID-19 pandemic will cause the global economy to contract by 5.2%, resulting in the deepest recession since the Second World War.
The report states that the impact of the crisis will be felt through lower investment, erosion of human capital, and fragmentation of global trade and supply linkages.
Advanced economies are expected to shrink by 7% in 2020, while emerging market and developing economies are forecast to contract by 2.5% this year, marking the first contraction of this group in at least sixty years.
Per capita incomes are expected to decline by 3.6%, which will push millions of people into extreme poverty this year, the report warns.
The economies most affected are those with heavy reliance on global trade, tourism, commodity exports, and external financing, with the magnitude of disruption varying from region to region.
The World Bank also warns that interruptions in schooling and primary healthcare access are likely to have lasting impacts on human capital development.
Specifically, the U.S. economy is forecast to contract 6.1% this year, while the Euro Area output is expected to shrink 9.1% in 2020, and Japan's economy is anticipated to shrink by 6.1%.
