Thursday, June 4, 2020

Global Economic Prospects Report, 2020 by World Bank


The World Bank recently launched the Global Economic Prospects Report, 2020. The report highlighted the impact of COVID-19 on countries.

Key findings of the report

  • The report says that the Emerging Market and the Developing Economies are highly vulnerable. 
  • They face health crisis, external shocks, restrictions, tourism, falling trade, capital outflows and commodity prices. 
  • These countries according to the report are expected to have 3% to 8% output loss.
  • Around 60 million people may be pushed to extreme poverty due to COVID-19 this year. 
  • The financial crisis due to recession will reduce the potential output by almost 8%.

Recommendations

The report makes the following recommendations
  • The report suggests to make better policy choices. It includes greater debt transparency, major expansion of cash safety and faster advances in digital connectivity.
  • Along with addressing health emergencies, policies to boost long term boost should also be considered. This includes improving environment for business, enhancing outcomes of education and improving governance.

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