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COVID-19 will drive the global economy into its worst recession in 80 years

COVID-19 will drive the global economy into its worst recession in 80 years 

The world economy due to the second wave of COVID-19 “will be in the deepest recession in the last 80 years.” This forecast was made in its macroeconomic forecast for 2020-2023 by the Russian Accounts Chamber (JV).

 Economy COVID-19 recession

According to experts JV, despite the active recovery of various sectors of the economy, further the prospects for the situation around the world remain uncertain. This is due to the completion of many incentive programs in the second half of this 2020. And also with a new increase in the number of people infected with COVID-19 around the planet.

It is worth noting that in the second quarter, most international organizations revised their forecasts for the development of the global economy for 2020-2021 downward. The World Bank forecasts a fall of 5.2%. The International Monetary Fund expects global GDP to sink 4.9%. And Fitch predicts a 4.6% decline.

The Organization for Economic Co-operation and Development's forecast is grim. The OECD expects a 6% reduction in world GDP this year. The organization's chief economist, Laurence Boone, previously said in an interview with Les Echos that the global economy will be shocked by the COVID-19 pandemic in the coming year.

“The global economy will not recover faster than predicted,” she said. “We have many months to live with COVID-19.” “By the end of 2021, global GDP will lose $ 7 trillion. This is a major shock, ”Boone stated.

The second wave of COVID-19 will suit the global economy with a new downturn

Meanwhile, the global economy adviser for Pacific Investment Management, Joachim Fels, told Bloomberg that the world economy is recovering, but a new downturn will soon come.

invested trillions of dollars to support their economies during the coronavirus pandemic. According to Fels, this led to an increase in production in Germany, unemployment in the United States fell, the dollar stopped falling. And emerging markets are given a respite.

However, sustaining the positive changes will not be easy, and the authorities will need to strengthen stimulus measures. According to Warrick McKibbin of the Brookings Institution, it will take a long time to roll out vaccination around the world. He estimates the damage to the global economy due to coronavirus in the coming years at $ 35 trillion. : ///

Record COVID-19 will drive the world economy into the worst recession in 80 years first appeared TEKNOBLOG .

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