World Bank cuts in reviving the eurozone and the global economy

According to forecasts released on Tuesday, January 5, despite the recession in 2020, the eurozone’s economic recovery this year will be weaker than the World Bank initially predicted.

According to forecasts, single currency countries are expected to grow by 3.6% of GDP by 2020 after a decline of 7.4%. This is good news and bad news compared to the predictions made by the Washington-based organization in June.

The good news is that last year’s decline in GDP will be slightly lower than expected, with annual-year declines of 7.4% and 9.1%, respectively. The bad news is that this year, 2021, the recovery will be very moderate, with a downward correction of 0.9 percentage points to 4.5% to 3.6% of GDP.

This cut of about 1 percentage point was due to the second wave of the Govt-19 epidemic, which was more severe than expected in advanced economies and especially in Europe. “In advanced economies, early recovery stagnated in the third quarter after a resurgence of epidemics, indicating a slow and difficult recovery,” the World Bank said in a note on global economic prospects in its January report.

“The decline in global economic activity in 2020 is projected to be slightly lower than previously predicted, mainly due to more moderate contractions in the advanced economies and a much stronger recovery in China,” the agency said.

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