Economic Downturn in 2020 Worst Than 2007-09 : World Bank

Regarding the economic crisis due to the Corona virus epidemic, the World Bank has said that the estimates of the present economic decline is going to be more serious than the economic downturn of 2007-09. World Bank President David Malpass, during the annual summer meeting with the International Monetary Fund (IMF) said that the economic crisis caused by the corona virus is being felt all over the world, but its impact on poor countries is stronger.

The International Monetary Fund (IMF) chief Kristalina Georgieva has warned that the current crisis has given many emerging markets, developing economies and policy makers a tough challenge. Due to this epidemic, the condition of the global economy has become more and more severe and a serious economic contraction is set for 2020. 

Decline in production, investment, employment and trade

David Malpass said that two-thirds of the world’s poorest population live in countries eligible for help from the International Development Association (IDA). IDA is a part of the World Bank and helps poor countries. This crisis will have the highest impact on them. The President of the World Bank said that besides the impact of the corona virus epidemic on health and medicine, they are anticipating a major global economic slowdown. “Looking at the decline in production, investment, employment and trade, our assessment suggests that it will be terrible from the economic downturn of 2007-09” he said.

The Managing Director of the IMF said that Covid-19 has hit the global economy at a time when it was already growing at a slow pace due to trade disputes, uncertainty on policy fronts and geopolitical tensions. “Globally, the corona virus-like crisis has never been seen before” said Georgieva. This poses a tough challenge for policy makers of many emerging markets and developing economies.

She said that this epidemic is a big challenge especially for economies where the public health system is weak or there is less scope for capacity reduction. Georgieva said that the pace of recovery in the global economy was slow even before the corona virus. Now the global economy is going to suffer a severe recession in 2020. She said that the medium-term scenario of the global economy is clouded by uncertainty.

World Bank can provide aid of $ 160 billion in next 15 months

David Malpass stated that the World Bank has so far helped 64 developing countries and is expected to help 100 countries by the end of April. He also said that the World Bank will be able to generate $ 160 billion as aid in the next 15 months. In this, IDA will provide $ 50 billion in assistance at affordable rates. Malpass said that the Covid-19 help program is based on the three principles :

  • saving poor families
  • providing security to companies
  • saving jobs. 

He said that credit facility is the most effective way to help poor countries. Earlier, the IMF has also expressed fears that the economic crisis that is arising due to the corona virus epidemic may be the most severe global economic crisis since the Great Recession of the 1930s.

In India cases rise to 15,712; death toll rises to 507

According to data, the number of Covid-19 infected people worldwide has crossed 2 million. So far, the epidemic has killed 1,44,000 people worldwide. America is most affected by this. It has killed 35,000 people in the US and infected over 7,00,000 people. 

Since the total of 1063 new cases reported in India in the last 24 hours, the number of people infected with the Covid-19 epidemic, including foreign nationals, has increased to 15,712 by Sunday morning in the country. The Ministry of Health has given information about this. The Ministry of Health, presenting the latest data in the morning said that a total of 12,969 Covid-19 are currently infected with the pandemic. A total of 2,232 patients who have recovered fully after treatment have been discharged from the hospital, while 507 people have died due to the epidemic.

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