World Bank Chief Economist Says Global Recovery From the COVID-19 Crisis May Take 5 Years

Geneva, Sept 18: “Everything depends” on when a vaccine gets approved and how long it would take for global access, World Bank’s chief economist Carmen Reinhart said on Thursday.

“Naturally, there will be rebounds but the real recovery – how long it will take for the average person to recover the income they had before the crisis, the GDP per capita – this will take at least five years,” she said.

The economist, who is also a professor at the Harvard Kennedy School, said that rebounds will rely on when economic activity becomes “more normal” once lockdowns end fully. She highlighted that the pandemic-caused recession will be more prominent and last longer in some countries than in others.

Global poverty rates will rise following the crisis for the first time in 20 years, she said.

Adding to widespread outlooks of uncertainty, she said: “After the 2008-2009 crisis, I more or less knew what to expect, but here, we are in a situation that is very different.”

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