Data presented by Buy Shares indicate that the global economy is projected to lose $3.94 trillion in real GDP. The loss will be recorded across 2020 mainly due to the coronavirus pandemic.
Real GDP refers to the macroeconomic statistic that measures the value of the goods and services produced by a country during a specified period, adjusted for inflation. It measures a country’s total economic output, adjusted for price changes. Governments use the metrics for analyzing economic growth and purchasing power over time.
China only country to record positive growth
According to the data, the ten most impacted countries will cumulatively lose $696.56 billion in real GDP. The United States is projected to be the most hit country with a loss of $178.4 billion followed by Japan at $86.78 billion while the United Kingdom will be the third most impacted country at $74 billion. France is fourth at $73.34 billion while India will be the fifth most impacted at $71.73 billion.
Other countries to record massive losses in real GDP include Italy,($58.70 billion) Germany ($55.69), Brazil, ($36.06 billion)Russia,($33.27 billion) Mexico, ($32.31 billion)Canada, ($27.92 billion), and South Korea ($3.76 billion)
From the research, China is the only country set to register positive growth in real GDP at $51.12 billion.
The researchers highlight how the future evolution of the pandemic will affect the projections. According to the research report:
“The economic projections remain conditional as they largely depend on the evolution of the pandemic and measures put in place to contain the crisis. For example, the development of a vaccine will spur rapid recovery. On the other hand, with some countries like the United States facing a second wave, they might revert to severe containment measures like lockdowns, slowing down the recovery. However, it is largely expected that most governments will be prepared for local sporadic outbreaks giving way for targeted local containment measures as opposed to a national outlook.”
The economic projections remain conditional as they largely depend on the evolution of the pandemic and measures put in place to contain the crisis. For example, the development of a vaccine will spur rapid recovery. On the other hand, with some countries like the United States facing a second wave, they might revert to severe containment measures like lockdowns, slowing down the recovery. However, it is largely expected that most governments will be prepared for local sporadic outbreaks giving way for targeted local containment measures as opposed to a national outlook.
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