The global economy could go into a recession due to COVID-19 shocks and this could spill over to Kenya, according to the World Bank Kenya Economic Update. The measures have seen industries shut operations, global production and transport chains disrupted, and consumer demand suppressed. The expectation of a global recession reflects major negative impacts from the pandemic in both the advanced and emerging markest and developing economies. Simulations suggest that the COVID-19 shock would be greater than the global financial crisis when global output contracted by 1.7 per cent in 2009. This unanticipated shock will lead to a major downward revision of the World Bank’s baseline global growth projection for 2020, which prior to the crisis was 2.5 percent.

Source: The Star April 29, 2020 00:56 UTC