Global Economic Prospects

Subject: Economy

Context:

In its latest Global Economic Prospects report, the World Bank predicted a 3.2 per cent contraction in India’s economy during the current fiscal year

Concept:

• 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.
• According to the report, economic activity among advanced economies is anticipated to shrink by seven per cent in 2020 as domestic demand and supply, trade and finance have been severely disrupted.
• Emerging Markets and Developing Economies (EMDEs) are expected to shrink by 2.5 per cent this year, their first contraction as a group in at least 60 years, it said.