The Covid-19 pandemic will plunge the global economy into the deepest recession since the Second World War as it will shrink by 5.2 percent this year, said the World Bank.
In its June 2020 Global Economic Prospects, the World Bank said the largest fraction of economies is experiencing in per capita output since 1870.
"Economic activity among advanced economies is anticipated to shrink 7 percent in 2020 as domestic demand and supply, trade, and finance have been severely disrupted. Emerging market and developing economies (EMDEs) are expected to shrink by 2.5 percent this year, their first contraction as a group in at least sixty years," it said.
"Per capita incomes are expected to decline by 3.6 percent, which will tip millions of people into extreme poverty this year," the report added.
According to Global Economic Prospect, June 2020, "The blow is hitting hardest in countries where the pandemic has been the most severe and where there is heavy reliance on global trade, tourism, commodity exports, and external financing."
World Bank Group vice President for Equitable Growth, Finance and Institutions, Ceyla Pazarbasioglu said "Our first order of business is to address the global health and economic emergency. Beyond that, the global community must unite to find ways to rebuild as robust a recovery as possible to prevent more people from falling into poverty and unemployment."
"The Covid-19 recession is singular in many respects and is likely to be the deepest one in advanced economies since the Second World War and the first output contraction in emerging and developing economies in at least the past six decades," said World Bank Prospects Group Director Ayhan Kose.