The World Bank has lowered its global growth forecast by stating that the COVID-19 outbreak has placed the global economy in the deepest economic recession since the Second World War. If Turkey’s economy will shrink 3.8 percent this year, it was made in 2021 will grow 5 percent estimate.
The World Bank noted that the new type of coronavirus (COVID-19) epidemic brought the global economy into the deepest economic recession since World War II, lowering its global growth forecast for this year.
The World Bank has published the June 2020 issue of the Global Economic Prospects Report.
The report pointed out that the rapid and great shock caused by the COVID-19 epidemic and the measures taken against the epidemic dragged the economy to a serious contraction, and the global economy will shrink 5.2 percent this year.
It is stated in the report that this reflects the deepest recession since the Second World War.
The World Bank predicted that the global economy will grow 2.5 percent this year in its estimates in January.
In the bank’s report, the global economic growth forecast for 2021 was increased from 2.6 percent to 4.2 percent.
The US economy will contract 6.1 percent and the Euro Area will contract 9.1 percent.
In the report, which stated that there are serious deteriorations in domestic demand and supply, trade and finance in developed economies, it is also stated that the economies of these countries are expected to shrink by an average of 7 percent in 2020, and to grow by 3.9 percent next year.
It is predicted that the US economy, which is in the group of developed countries, will shrink 6.1 percent this year and will grow 4 percent next year.
On the other hand, it was evaluated that the Euro Area economy will shrink 9.1 percent this year and will display a growth performance of 4.5 percent next year.
While the Japanese economy shrank 6.1 percent this year, the forecast that it will grow 2.5 percent next year was also included in the report.
China’s growth forecast down
In the report, which is estimated that the economies of developing countries will contract an average of 2.5 percent this year, it is stated that the per capita income is expected to decrease by 3.6 percent and this situation will decrease millions of people to extreme poverty. It is stated that developing countries are expected to show a growth performance of 4.6 percent in 2021.
Among the countries in this group, China’s economic growth forecast for this year has been reduced from 5.9 percent to 1 percent. It is predicted that the Chinese economy will grow 6.9 next year.
While the Russian economy is expected to shrink 6 percent this year, it is estimated that it will grow by 2.7 percent in 2021. While the Indian economy has contracted by 3.2 percent this year, it is predicted that it will grow by 3.1 percent next year.
The report also included expectations for Turkey’s economy, the country’s economy will shrink 3.8 percent this year, was made in 2021 will grow 5 percent estimate.
