The World Bank recently launched the Global Economic Prospects Report, 2020. The report highlighted the impact of COVID-19 on countries.
Key findings of the report
The report says that the Emerging Market and the Developing Economies are highly vulnerable. They face health crisis, external shocks, restrictions, tourism, falling trade, capital outflows and commodity prices. These countries according to the report are expected to have 3% to 8% output loss.
Around 60 million people may be pushed to extreme poverty due to COVID-19 this year. The financial crisis due to recession will reduce the potential output by almost 8%.
Recommendations
The report makes the following recommendations
- The report suggests to make better policy choices. It includes greater debt transparency, major expansion of cash safety and faster advances in digital connectivity.
- Along with addressing health emergencies, policies to boost long term boost should also be considered. This includes improving environment for business, enhancing outcomes of education and improving governance.