World Bank: Global Economy Will Shrink 5.2% This Year

CNN Reports: World Bank says the global economy will shrink by 5.2% this year

The US and the global economy have been drastically impacted by the novel coronavirus. More than 7 million people have been infected, which has causes businesses to close their door to stop the spread.

Worldwide gross domestic product -- the broadest measure of economic growth -- will contract 5.2% in 2020, according to a report by the World Bank. That's despite the unprecedented fiscal and monetary policy support governments around the world have been rolling out. Trillions of dollars have been deployed to help companies stay in business, keep cash in consumers wallets and let financial markets function properly.

More specifically, the Us economy is expected to shrink by 6.1%.

The pandemic recession will probably leave deep scars: Investments will stay lower in the near term, and global trade and supply chains will erode to some extent. On top of that, millions of people have been laid off, causing the biggest blow to America's labor market since the Great Depression. The US Federal Reserve has stressed its concern about laid-off workers getting detached from the labor force as a result of the crisis.