Economy
21:34 19 October 2020
Post by: WBJ

Pandemic to trigger $4 trillion loss in global real GDP in 2020

Pandemic to trigger $4 trillion loss in global real GDP in 2020
Source: Buy Shares

The coronavirus induced recession has plunged many countries into economic uncertainty as a result of the severe containment measures. As expected, the pandemic has triggered massive losses in different sectors of the economy which can be reflected in metrics like the real Gross Domestic Product.

Data presented by Buy Shares projects that the global real GDP will plunge by $3.94 trillion in 2020. The research also shows that the ten most impacted countries will cumulatively lose $696.56 billion in real GDP due to the pandemic.

According to the research, the United States will be the biggest loser at $174.68 billion. South Korea will be the tenth most impacted nation with a loss of $3.76 billion. Elsewhere, China is the only country to emerge with a positive growth of 1.8 percent or a $51.12 billion gain in real GDP.

During the pandemic, most global economies stalled due to containment measures like nationwide lockdowns. The economy went into a sudden shock with global trade declining while labor markets witnessed massive layoffs. The decrease in real GDP is also driven by a drop in consumption and investment. However, the drop in real GDP could have been worse if some governments had not intervened to partially offset the negative contributions.

The economic projections remain conditional as they largely depend on the evolution of the pandemic and measures put in place to contain the crisis. For example, the development of a vaccine will spur rapid recovery. On the other hand, with some countries like the United States facing a second wave, they might revert to severe containment measures like lockdowns, slowing down the recovery. However, it is largely expected that most governments will be prepared for local sporadic outbreaks giving way for targeted local containment measures as opposed to a national outlook.

(WBJ)


gdp
usa
china
pandemic
buy shares

More News

lifestyle

LifeStyle
12 days ago

'I am afraid of the fourth wave of the pandemic and I would not like to repeat the scenario we know about': Tomasz Kammel

LifeStyle
24 days ago

‘I can't wait to get to know my competitors in the Miss World competition in person’: Karolina Bielawska

LifeStyle
29 days ago

Women of Business for mothers of terminally ill children

LifeStyle
1 month ago

Poles lead unhealthy lifestyle in pandemic

Book of Lists

Book of Lists
7 months ago

The largest Polish companies under the Book of Lists microscope! Book of Lists 2020/2021 certificates have been awarded.

Book of Lists
1 year ago

25th jubilee edition of Book of Lists – project start

advertisement