Global economic prospects, June 2020

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      <subfield code="a">COVID-19 has triggered a global crisis like no othera global health crisis that, in addition to an enormous human toll, is leading to the deepest global recession since the second world war. While the ultimate growth outcome is still uncertain, and an even worse scenario is possible if it takes longer to bring the health crisis under control, the pandemic will result in output contractions across the vast majority of emerging market and developing economies (EMDEs). Moreover, the pandemic is likely to exert lasting damage to fundamental determinants of long-term growth prospects, further eroding living standards for years to come. The immediate policy priorities are to alleviate the ongoing health and human costs and attenuate the near-term economic losses, while addressing challenges such as informality and weak social safety nets that have heightened the impact on vulnerable populations. Once the crisis abates, it will be necessary to reaffirm credible commitment to sustainable policiesincluding medium-term fiscal frameworks in energy-exporting EMDEs suffering from the large plunge in oil pricesand undertake the necessary reforms to buttress long-term growth prospects. For these actions, global coordination and cooperation will be critical.</subfield>
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