The World Bank expects a “massive global recession” because of Corona
World Bank President David Malpas said the spread of the Coruna virus is expected to lead to a “massive global recession” and is likely to do the most harm to poor and underdeveloped countries.
“We intend to respond strongly and broadly with support programs, especially for poor countries,” Malbas said Thursday, noting that he intends to speak soon with the leaders of Ethiopia, Kenya and other countries.
He explained: “We are working to strengthen the capacity of developing countries to respond to the Covid-19 epidemic and shorten the period of access to economic and social recovery.”
The World Bank approved a $ 160 billion emergency aid plan over 15 months to support countries ’efforts to tackle the consequences of the Corona virus.
In a statement, the bank announced the first urgent financing package for the crisis by allocating $ 1.9 billion to finance projects in 25 countries and ongoing operations in 40 countries.
The Organization for Economic Cooperation and Development said that economic growth may halve if the virus continues to spread, which could push the global economy to its worst state since the global financial crisis.
The organization pointed out that global GDP will grow by only 1.5% in the year 2020, if Corona spreads more widely throughout Asia, Europe and North America, nearly half of the 2.9% growth rate that the group had expected for 2020 before The discovery and spread of the virus, which could push Japan and Europe into an economic recession. Source