Global recession 2020
Global economy will take a lot of time to get back to previous position as the recession is deepest. Coronavirus has severely affected the global economy this year so far. Triggered by worldwide lockdown measures taken to contain coronavirus outbreak, the global economic slowdown is deepest in many aspects. The coronavirus pandemic has infected more than 12 millions, leaving over half a millions dead so far around the world. The outbreak has had a record breaking inverse impact on global economy in 2020.
Global slowdown 2020 shook businesses
Total recovery of even the world’s biggest economies can be expected not before the end of 2022. A number of multinational companies had to wind up their businesses during lockdown in one country or another. Many government companies in countries like in India are sending their employees on unpaid leaves.
Even the governments are looking towards privatization of public companies for not being able to afford losses. Millions of employees in private companies around the world have been sacked without prior notices. Most affected by the global economic crisis are the migrant laborers, salaried employees and small businesses.
Claims of seeing green shoots
The claims of a government of any country in the world about already seeing green shoots of economic recovery are way far from the real picture. These claims just work for saving the governments from being criticized for their latest failures. Any economy, big or small, cannot stay separate from the global crisis.
When crude oil prices increase internationally, you cannot expect them to be normal in your country. Even many times, currently too, when crude oil prices at international level are declining, you see them going upward in your country due to bad government policies.
Global recession 2020 predictions
To get the idea of what the global economy is going through in times of coronavirus, we must have a glance of recent global economic facts and figures. In the following lines, you can have a look of current scenario through the forecasts on global economic recession reported by some international agencies.
OECD forecast
The Organization for Economic Cooperation and Development (OECD) has said the world may witness worst peacetime recession in past 100 years due to current corona crisis. The agency, serving 37 countries, has predicted the global economy to shrink by 12% by 2020 first half end. It will see a more low by 2021 end, compared to its levels during the beginning this year, it added.
World Bank report
Coronavirus shock and lockdown measures to mitigate it worldwide are likely to affect global economy severely, said the World Bank. The global economy is likely to decline by 5.2% in 2020, it said in its Global Economic Prospect report. The coronavirus global recession is the worst pandemic slowdown since 1870, the international agency added.
It also predicted that global per capita gross domestic product is likely to shrink by 6.2%, to see a deepest global recession since 1945-46, after World War II. The recession will be more than twice deepest recession associated with any global financial crisis, it added.
IMF report
The International Monetary Fund (IMF) has also given its forecast of global gross domestic product to shrink by 4.9 % in 2020 due to coronavirus crunch. The international agency said, the global economy has affected worse than predictions for the first half of 2020. It is likely to see a rebound by 5.4% by the end 2021, it said in World Economic Output report.
Looking into the global data, anyone can observe that the economic crisis in the world is drastic. And no country can imagine a recovery anytime soon. All we can do is to work at our level best, whatever we can do from wherever we are, to contribute in the economy. When things get better, we will recognize the changes on our own.
