April 24, 2020 / 3:31 PM / a month ago

Developing economies could see sharper recession in 2020, World Bank warns

WASHINGTON, April 24 (Reuters) - Senior World Bank officials on Friday warned that developing economies could see a deeper recession than currently expected if consumption and investment do not rebound quickly in the wake of the coronavirus pandemic.

In a blog posting on the Bank’s website, the officials said the preliminary baseline scenario forecast a “grim” 2% drop in economic output in developing countries - the first contraction in these economics since 1960.

But it said growth outcomes could be ‘considerably worse’ and output in those economies could drop by nearly 3% if just one of the Bank’s assumptions failed to materialize, and investment and consumption did not rebound.

Reporting by Andrea Shalal and David Lawder Editing by Chizu Nomiyama

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