Economy to contract by 3.2% this fiscal, says World Bank

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News: The World Bank has released the Global Economic Prospects (GEP) June 2020 report.

Facts:

  • Global Economic Prospects is a World Bank Group flagship report that is issued twice a year, in January and June.
  • Aim: To examine global economic developments and prospects with a special focus on emerging markets and developing economies.

Key Takeaways:

  • Global Economy: The COVID-19 pandemic will shrink the global economy by 5.2% in 2020-21 representing the deepest recession since World War Two and a dramatic rise in extreme poverty.
  • Indian Economy: It is expected to contract by 3.2% (so growth is -3.2%) in FY 2020-21 due to impact of Coronavirus pandemic and restrictions on activity.However, it will make a modest recovery to 3.1% growth in the next fiscal year.

Additional Facts:

Other reports released by World Bank:

  • Ease of Doing Business Report
  • Human Capital Index(HCI)
  • World Development Report(WDR)
  • Logistics Performance Index(LPI).