(NewsReady.com) – It’s no secret the coronavirus has hit the world markets hard. After watching trends and with a better understanding of how COVID-19 spreads, the United Nations (UN) has put forth its new economic projections. It’s not looking good.
Impact of #COVID19 is projected to shrink global economy by 3.2% in 2020, pushing millions into poverty.@UNDESA's #WorldEconomyReport outlines measures to stabilize & stimulate the economy and support the most vulnerable in society. https://t.co/PHLOxSxfEc pic.twitter.com/5YwI3m6ZgD
— United Nations (@UN) May 13, 2020
The UN’s new mid-year report estimates a total 3.2% drop in the global economy by the end of the year. It’s the most pronounced downturn since the 1930’s Great Depression. All of the gains over the last 4 years, around $8.5 trillion, will disappear over the next 2 years.
Depending on the type of forecast, the US economy could drop anywhere between 4.8% and 6.5% across 2020, though it’s still expected to go back up a few points during 2021.
This new report also expects 34.3 million worldwide to fall below the “extreme poverty line” with over half of them being in Africa. By 2030, another 130 million will join them. The UN also demonstrated how global tourism has dropped and how commodity prices have been in a “free fall,” especially oil.
Although 2020 will be rough for everyone, even the UN projects overall economic growth through next year. Fortunately, President Donald Trump and Congress are working to lessen the impact on America. That’s why they’ve passed so many stimulus bills. There is light at the end of the tunnel — we just need to make it through the tunnel first.
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