Economics
World Economy Faces $5 Trillion Hit That’s Like Losing Japan
- Global output might not return to pre-virus levels until 2022
- Outcomes could be far worse if policy makers don’t coordinate
A pedestrian wearing a protective mask walks in the Shimbashi business district in Tokyo, April 8.
Photographer: Toru Hanai/BloombergThis article is for subscribers only.
The coronavirus pandemic is set to rob the global economy of more than $5 trillion of growth over the next two years, greater than the annual output of Japan.
That’s the warning from Wall Street banks as the world plunges into its deepest peacetime recession since the 1930s, after the virus forced governments to demand that businesses close and people stay home.