Economics
World Bank Sees EM Economies Shrinking for First Time Since 1960
- Global growth seen contracting 5.2% after pandemic lockdowns
- Emerging and developing economies to see worst drop on record
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The global economy will contract the most since World War II this year and emerging nations’ output will shrink for the first time in at least six decades due to the Covid-19 pandemic, reducing incomes and sending millions of people into poverty, the World Bank said.
Global gross domestic product will probably shrink 5.2% in 2020, the Washington-based development organization said in its semi-annual Global Economic Prospects report Monday. Emerging and developing economies will shrink 2.5%, their worst performance in data that starts in 1960, it said.