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.