Coronavirus: how much is the world economy expected to shrink?

People on a street in Tokyo. March 18, 2020

he world economy is likely to face a long slog back from the coronavirus crisis.

Two reports this week predicted that global growth will struggle to bounce back from the lockdowns, travel restrictions and business closures meant to contain the pandemic.

IHS Markit said that it expects the world economy to shrink 5.5% this year, triple the damage it sustained in the 2008 financial crisis, and then struggle to regain traction.

“While growth in the hardest-hit economies may snap back briefly, the momentum will soon fade,’’ the London-based financial research firm warned.