Global economic recovery may take 5 years, World Bank chief economist says

https://www.channelnewsasia.com/news/business/global-economic-recovery-may-take-5-years-world-bank-chief-13120586

FILE PHOTO: A participant stands near a logo of World Bank at the International Monetary Fund - Wor
FILE PHOTO: A participant stands near a logo of World Bank at the International Monetary Fund – World Bank Annual Meeting 2018 in Nusa Dua, Bali, Indonesia, Oct 12, 2018. (Photo: REUTERS/Johannes P. Christo/File Photo)

17 Sep 2020 04:49PM(Updated: 17 Sep 2020 04:50PM)

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MADRID: The global economic recovery from the crisis originated by the coronavirus pandemic may take as much as five years, the World Bank’s chief economist Carmen Reinhart said on Thursday (Sep 17).

“There will probably be a quick rebound as all the restriction measures linked to lockdowns are lifted, but full recovery will take as much as five years,” Reinhart said in a remote intervention during a conference held in Madrid.

Reinhart said the pandemic-caused recession will last longer in some countries than in others and will exacerbate inequalities as the poorest will be harder hit by the crisis in rich countries and the poorest countries will be harder hit than richer countries.

For the first time in twenty years, global poverty rates will rise following the crisis, she added. 

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