The World Bank predicts that the worldwide gross domestic product (GDP) will contract 5.2% in 2020, and that the globe will have its deepest recession in 80 years.
According to a report by the World Bank, the worldwide GDP will contract despite the unprecedented fiscal and monetary policy support that governments around the world have been rolling out. Advanced economies such as the United States or Europe are also projected to shrink by seven per cent.
This quarter will almost certainly be the worst for the Western world, but most of Asia felt the brunt of the outbreak in the first months of the year. The recession would be even worse if it took longer than expected to bring the pandemic under control, or if financial stress forced a number of companies into bankruptcy.