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Global Economy Shrinks 3.2 Percent This Year

The United Nation, which explained the effects of coronavirus on the global economy, s published the World Economic Status and Expectations Report covering the second half of 2020.

Global Economy Shrinks 3.2 Percent This Year
Yazar: Elif Dinçer

Yayınlanma: 14 Mayıs 2020 22:44

Güncellenme: 7 Kasım 2024 20:46

The United Nation, which explained the effects of coronavirus on the global economy, s published the World Economic Status and Expectations Report covering the second half of 2020. Accordingly, the global economy will shrink 3.2 percent this year. The coronavirus, which emerged in Wuhan, China in December 2019 and turned into a pandemic, caused a severe blow to the world economy. The United Nations, evaluating the effects of the pandemi in terms of the global economy, published the World Economic Status and Expectations Report covering the second half of 2020. According to this report, the global economy will shrink 3.2 percent this year. The report, which predicts that the global economy will contract by 3.2 percent, emphasized that this contraction will be the hardest contraction since the Great Depression in the 1930s. It is announced that the global economy is expected to lose approximately 8.5 trillion dollars in 2020 and 2021 due to the coronavirus epidemic and the gains in the last 4 years will disappear. Coronavirus will push 34 million more than excessive people into extreme poverty In the report released by the United Nations, it is estimated that developed economies will shrink by 5 percent this year and 3.4 percent in 2021 to grow enough to compensate for moderate and lost production. In developing economies, a shrinkage of 0.7 percent is expected this year, while a growth of 5.3 percent will be reported in 2021. The report pointed out that there was a sharp decrease in global demand and that there was deterioration in the supply chain, and the forecasts that international trade will shrink approximately 15 percent this year. In the UN report, it was emphasized that the coronavirus epidemic also increased poverty and income inequality, and this year the epidemic will likely cause 34.3 million people to cross the extreme poverty line and 56 percent of the increase in poverty will occur in African countries.
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