Tue 02 June 2020:
The World Bank has said it expects the coronavirus and resulting recessions to leave “lasting scars” on developing and emerging market countries, with the worst damage on oil exporters and those suffering financial crises.
In analytical chapters of its new Global Economic Prospects report, the bank said that the average emerging market country suffering a financial crisis could see potential output fall by 8 percent over a five year period, with lost output for developing oil exporters falling 11 percent.
Funding shortfall hinders pandemic response: World Bank chief
The global economy is facing “staggeringly large” losses from the coronavirus pandemic and the recovery is hampered by a shortage of resources, World Bank President David Malpass said.
The initial estimate of $5 trillion in economic value destroyed by the measures against COVID-19 likely falls far short of the actual damage, Malpass told AFP news agency in an interview.
The crisis will also force developing nations to rethink the structure of their economies, he said.
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