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Effect of Coronavirus: …… The World enters deepest recession since World War 11 – The World Bank

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The World Bank says  COVID =19 pandemic will shrink the global economy by 5.2 per cent this year, representing the deepest recession since World War Two, and triggering a dramatic rise in extreme poverty. A statement from the United Nations today said the World Bank in its latest Global Economic Prospects  report. In rich countries, economic activity is expected to decline by seven per cent as the coronavirus  outbreak severely disrupts domestic demand and supply, trade and finance activities, it said. Incomes fall, extreme poverty looms: Emerging market and developing economies are due to shrink by 2.5 per cent – their first contraction as a group in at least 60 years. Per capita incomes, meanwhile, are forecast to fall by 3.6 per cent – tipping millions into extreme poverty. Hardest hit are those countries where the pandemic has been most severe and where there is a heavy reliance on global trade, tourism, commodity exports and external financing, the report said. This is a deeply sobering outlook, with the crisis likely to leave long-lasting scars and pose major global challenges,” said Ceyla Pazarbasioglu, the World Bank Group’s Vice President for Equitable Growth, Finance and Institutions. The New York Times confirmed today that the United States indeed Into Recession in February: The pandemic forced the economy to contract sharply, ending a record expansion and prompting the group that dates U.S. business cycles to formally declare a recession. The United States economy officially entered a recession in February 2020, the committee that calls downturns announced on Monday, bringing the longest expansion on record to an end as the coronavirus pandemic caused economic activity to slow sharply. The economy hit its peak in February and has since fallen into a downturn, the National Bureau of Economic Research’s Business Cycle Dating Committee said. A recession begins when the economy reaches a peak of activity and ends when it reaches its trough. This downturn is the first since 2009, when the last recession ended, and marks the end of the longest expansion — 128 months — in records dating back to 1854. Most economists expect this recession to be both particularly deep and exceptionally short, perhaps just a few months, as states reopen and economic activity resumes. The National Bureau of Economic Research, a nonprofit group that tracks economic cycles in the United States, noted the unusual circumstances surrounding the slump in its announcement. The committee…

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