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Global economy to plunge into worst recession since WW-II: World Bank

The COVID-19 recession is the first since 1870 to be triggered solely by a pandemic, World Bank President David Malpass said in his foreword to the latest edition of the Global Economic Prospect report released on Monday.

June 09, 2020 / 02:19 PM IST

The global economy, which has plunged into a severe contraction, will shrink by 5.2 percent this year due to the massive shock of the coronavirus pandemic and the shutdown measures to contain it, the World Bank said on Monday.

The COVID-19 recession is the first since 1870 to be triggered solely by a pandemic, World Bank President David Malpass said in his foreword to the latest edition of the Global Economic Prospect report released on Monday.

"The speed and depth with which it has struck, suggests the possibility of a sluggish recovery that may require policymakers to consider additional interventions," he said.

For many emerging markets and developing countries, however, effective financial support and mitigation measures are particularly hard to achieve because a substantial share of employment is in informal sectors, the president of the Washington-based multilateral lender said.