COVID-19 could cause Great Depression like crisis in world economy warns Putin

 Mass employment, poverty and social disorder will increase as the result of economic crisis

Russian President Vladimir Putin has warned that the coronavirus pandemic could lead to a global economic collapse that would have a significant impact on the lives of millions of people across the world.

Putin addressing at the virtual G20 Conference of world leaders warned that, “despite some positive signals, the main risk is still the so-called stagnant mass unemployment with a subsequent increase in poverty and social disorder.

The coronavirus epidemic, the global lockdown and the freezing of economic activity launched a systemic economic crisis, which the modern world has not known since the Great Depression.” 

Putin also praised the “massive contribution” of the US, which, along with other countries, has joined together to “create a stimulus package for the world economy to the tune of $12 trillion.” Mainly put forward by large economies, including Russia’s, the stimulus is thought to have played a role in buoying fragile world markets.

Russian leader used the Asia-Pacific Economic Cooperation summit couple of days ago to warn that world GDP could shrink by as much as 4.4 % this year. Although estimates suggest Russia will perform better than that average, Putin warned of an alarming decline in industrial production and rising numbers of people risking falling below the poverty line.

Putin also urged the world powers t lift the economic sanctions and trade barriers being slapped against countries, including Russia. Putin said that “there is an escalation of economic contradictions among the leading players in the market. The poorer countries are suffering the most as COVID-19 hit them hard. The sanctions must be lifted.”     

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