World economy in crisis: likely to drop by 1%: UN

NEW YORK: A report published by the United Nations has estimated that the world economy is likely to drop by 1 per cent in 2020 because of large-scale shutdown caused by the corona virus. The report further stated that the economic decline could get even worse if the restrictions on economic activities continue till the third quarter of the year.

“Urgent and bold policy measures are needed, not only to contain the pandemic and save lives, but also to protect the most vulnerable in our societies from economic ruin and to sustain economic growth and financial stability,” said Liu Zhenmin, the U.N. Undersecretary-General for economic and social affairs.

The report assumes that the current scenario of the global shutdown would continue with the wide ranging restrictions in the European Union and the United States till the middle of the second quarter of this year, that is, between April and May 2020