Receive our newsletter – data, insights and analysis delivered to you
  1. Special Focus
  2. Covid-19
April 7, 2020updated 08 Apr 2020 9:10am

Western economies set to endure worst recession in postwar history

By Duncan West

The Covid-19 crisis will lead Western economies to shrink by more than in any year since the Second World War, economic experts have warned.

Financial analysts from GlobalData have published new forecasts suggesting global GDP will fall by 0.9 per cent in 2020. Western countries at the heart of the current pandemic will be among the hardest hit – with GDP predicted to fall over the calendar year by 7 per cent in Italy, 6.5 per cent in Germany, 5.3 per cent in the UK and 4.9 per cent in the US.

To put those figures in perspective, the UK’s GDP shrunk by 2.5 per cent in 1974 during the 1970s recession, and by 4.2 per cent in 2009, in the wake of the 2008 financial crisis.

The GlobalData forecasts are for calendar years rather than individual quarters. Other economists have predicted a deep drop-off in the second quarter of this year, followed by a slow return to something resembling normal conditions. That would mean a great deal of economic pain over the summer, easing towards the year’s end. Nonetheless, the overall picture for the year would remain the worst in peacetime.

Content from our partners
Small and simple: how medical device manufacturers select materials
Precision wire: The future of bespoke medical treatment
Why this global life sciences COO believes relocation to Charleston, SC, was key to achieving next-level success

The speed with which the forecasts have been revised downwards also gives cause for concern. At the start of 2020 almost every country monitored by GlobalData was predicted to experience economic growth this year.

Read the full article on New Statesman

Related Companies

Topics in this article:
NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Friday. The medical device industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU