The COVID-19 pandemic will entail a 4% contraction in the global economy this year.
This was told by economists at Bloomberg, Tom Orlik and Jamie Rush.
Experts emphasize that the collapse of the economy occurred at an “unprecedented rate”, which led many countries to the lowest rates in a hundred years.
“Compared to expectations at the beginning of the year, the cost of lost production is more than $6 trillion”, – economists say, noting that such a massive reduction is based on “optimistic assumptions about the outbreak and recovery”.
In this scenario, the US gross domestic product will decline by 6.4%, and Eurozone GDP by 8.1%. At the same time, Orlik and Rush fear that the desire of governments to reduce quarantine restrictions could provoke a second wave of a pandemic, which will lead to a collapse of the economy to 5.6% or even 7.2% if governments fail to provide sufficient support.China has increased purchases of Russian oil