Covid-19 has created an economic downturn that will cause a “pandemic depression” in many countries, according to World Bank chief economist Carmen Reinhart.
The world will follow a path similar to the 2008 global financial crisis, only worse, Reinhart and her husband, Vincent Reinhart, the chief economist at Standish Mellon Asset Management, write in the forthcoming issue of Foreign Affairs magazine. The article was written before Reinhart was named to her World Bank post.
The World Bank in June warned that the Covid-19 recession threatens to drag 70 million to 100 million people into extreme poverty, with emerging and developing economies shrinking the most in data going back to 1960. The United Nations also said that nations face the worst food crisis in at least 50 years.
57,152 in BrazilMost new cases today
-2% Change in MSCI World Index of global stocks since Wuhan lockdown, Jan. 23
-1.196 Change in U.S. treasury bond yield since Wuhan lockdown, Jan. 23
4.4% Global GDP Tracker (annualized), June