The World Bank on Monday predicted a 3.2 per cent contraction in India's economy during the current fiscal year. In its latest Global Economic Prospects report, the World Bank said that the global economy is expected to contract by 5.2 per cent as a result of the the COVID-19 pandemic. This will be the deepest recession in global economy since the second World War, the World Bank also said.
The #COVID19 pandemic shock is expected to cause the global economy to contract 5.2% this year—the deepest recession since WWII. The speed of forecast downgrades suggests a further downward revision is possible. https://t.co/u3xr5H1AKs#WBGEP2020pic.twitter.com/k0Oc23Tuif— World Bank (@WorldBank) June 8, 2020
It further warned that the forecasts would be revised downward if uncertainty over the pandemic and business lockdowns persist for longer periods.
The World Bank report said that advanced economies are expected to shrink 7 per cent in 2020, while emerging market economies will contract 2.5 per cent, their first since aggregate data became available in 1960. On a per-capita GDP basis, the global contraction will be the deepest since 1945-46.