24 June The Covid-19 pandemic has pushed the global economy into a level of recession that was last witnessed during.
The Covid-19 pandemic has pushed the global economy into a level of recession that was last witnessed during the World War II.
Emerging markets and developing economies are the worst affected as five out of six economies are expected to fall into outright recession as per capita income declines drastically.
Linda Yueh, an economist at the University of Oxford, shared an article by World Bank on the global impact of the Covid-19 pandemic.
The article notes that the recession caused by the pandemic will be the deepest since World War II and twice as deep as the 2008 global financial crisis.
The article further notes that emerging markets and developing economies are expected to contract for the first time in 60 years.
The global unemployment rate is also expected to rise to the highest levels since 1965, the article adds.
In other news, economist Dany Bahar noted that a decision made by the US government – to suspend visas for the H-1B programme designated for high-skilled workers and other categories – will result in a long-term, self-induced recession for the US.
He added that these policies are xenophobic and lack evidence to prove their rationale.