United Nations today released World Economic Situation and Prospects (WESP) mid-year update 2020. According to the report, COVID-19 is likely to cause massive reduction; worth $8.5 trillion in global output over next two years affecting both develop and developing nations.
Is the impact of #COVID19 worse than the #GreatDepression?— UN DESA (@UNDESA) May 13, 2020
💥World economy to shrink by 3.2% in 2020.
💥Developed countries’ economies to contract by 5.0%
💥Developing countries to shrink by 0.7%.
Find out more from our #WorldEconomyReport just out.https://t.co/jYGpYiQijC pic.twitter.com/BiKVVonkon
How big is it?
It’s worth almost three times the size of Indian economy.
It is likely to erode gains made by the global economy in the last four years.
Report also highlights that year 2020 is expected to witness a sharp contraction of around 3.2 per cent. Global economy has not experienced such a large contraction since the time of the great depression in 1930.
What report says about GDP outlook?
Developed nations GDP growth is expected to plunge to -5% per cent in 2020.
Developing countries output is projected to shrink by 0.7 per cent.
Some form of lockdown is implemented in nearly 90 per cent of the world’s economy.
It has resulted in crisis like situation due to disruption of supply chain , reduced consumer demand and job loss