Image Source: The Financial Express

Agencies:

COVID-19 has resulted in largest global economic contraction

Washington
October 17, 2020

The World Bank and the International Monetary Fund (IMF) said the global economic contraction caused by the ongoing Coronavirus pandemic is the largest in the last eight decades, raising the world poverty rate, exacerbating inequalities and damaging long term economic growth prospects.

The World Bank and IMF concluded their annual meeting here on Friday, which heavily revolved around the impact of COVID-19.

"The pandemic has resulted in the largest global economic contraction of the last eight decades: it is impacting developing, emerging and developed economies; increasing the global poverty rate; exacerbating inequalities and damaging long term economic growth prospects," according to a joint ministerial communique issued by the two UN backed institutions.

The associated lockdowns, restrictions and continued uncertainty have caused investments, trade and remittance flows to plummet eroded jobs and human capital, kept children out of school and pressured food and medical supply chains, it said.

The economic crisis is threatening the lives and livelihoods of vulnerable populations, including women-led households, youth and the elderly, refugees and displaced people.