Global Economy to Take Longer to Recover After Pandemic
Arslan Butt • 1 min read
Economists polled by Reuters anticipate that global downturn due to the coronavirus pandemic to be the most severe one the global economy is ever set to experience. In addition, they have forecast that economic recovery could take much longer and be more U-shaped than the previously anticipated quicker, V-shaped recovery.
So far, the coronavirus has infected over 2.6 million people worldwide and led to over 185,000 deaths, prompting several countries to extend their lockdown measures, halting economic activity as a result. Most of the leading economies of the world are already in recession, with domestic consumption and global trade collapsing even as unemployment is on the rise as industries and several workplaces remain shut.
Economists have also downgraded their forecasts for global GDP, now expecting the global economy to contract by as much as 2% vs. the previous estimate of 1.2% contraction forecast in the last edition of this poll three weeks ago. The IMF also now anticipates a contraction by 3% for the global economy even as the pandemic rages on across the world.
Most economies are hinting at restarting activity in a staggered and cautious manner, which could take longer to show results. Public health experts have also warned against easing shutdown restrictions too suddenly as it could drive a resurgence in the number of infections.