As the world grapples with the global pandemic, World Bank said production,employment,trade are all down in the emerging markets
The Chief Operating Officer of the International Finance Corporation has expressed concern about the effects of the COVID-19 pandemic on the global economy.
Stephanie Von Friedeburg said on Wednesday that the world has already seen somewhere in the range of 100 billion dollars leave emerging markets” since the beginning of January.
He was in a briefing via video teleconference during which he noted that “production, employment, trade, all are down” in emerging markets.
The World Bank official estimated that “foreign direct investment will be down by 40 percent in both 2020 and 2021 from its base in 2019
“It doesn’t matter whether you’re in a developed country or a developing country, locking down an economy creates insolvency.” She said, “a rise in unemployment and a loss of jobs, liquidity issues at the firm level” are expected, adding that “the longer the lockdown lasts, the more probability of insolvency.”