Recession and Economic Sustainability
The World Bank, in the June 2020 edition of its Global Economic Prospects, projected that the Covid-19 pandemic would result in the worst contraction per capita output since 1870 in most countries in the world.
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A Prasetyantoko
In the midst of so much uncertainty, one thing certain is that the world economy will go into a recession. The World Bank, in the June 2020 edition of its Global Economic Prospects, projected that the Covid-19 pandemic would result in the worst contraction per capita output since 1870 in most countries in the world.
According to World Bank records, there have been 14 major recessions since the 1870s and this year’s recession will be one of the deepest since the Second World War. The global economy contracted by 18 percent during the Great Depression of 1930-1932, and the Second World War resulted in a 15 percent decline in the economy. This year, the World Bank estimates that the global economy will shrink by 5.2 percent while the Indonesian economy will grow zero percent.