A new World Bank report warns that the pandemic has plunged the global economy into a deep recession of historic proportions, and the recovery outlook is grim, particularly for developing countries.
The report, Global Economic Prospects, published Monday, compares the current economic crisis to the 13 other recessions that have hit the global economy since 1870. This recession is the first to be triggered solely by a pandemic, and it is enormous. Here are five major takeaways from the report — four pessimistic and one guardedly optimistic:
WASHINGTON — When the history of the COVID-19 pandemic is written, there will be more than a few words devoted to the retailers the virus decimated as it pounded the economy. The last month, in particular, has brought bankruptcies from well-known brands with deep roots around the country. This weekend, Hertz, the rental car giant, joined the list.
But the impacts of the coronavirus are only half the story. In some cases, such as restaurants and travel companies, the virus is undoubtedly the primary cause of trouble, but in others it looks more like an accelerant — gas on a retail fire that has been burning for quite some time.
The last month has been particularly noteworthy. In the space of just two weeks, some of the best-known brands in America declared they were entering Chapter 11 bankruptcy and closing outlets across the country.