Global

World Bank Expects The Largest Globally Synchronized Recession In History

The pandemic turned a global slowdown into a global downturn, and it’s just getting started. World Bank analysts have noted a rapid revision of economic indicators around the world. The organization is now forecasting a synchronized downturn, spread over 90% of economies. This would be the largest global recession in history, surpassing the previous record set during the Great Recession.

Synchronization and Global Recessions

Synchronization is when one or more indicators begin moving together. When this occurs, there’s an amplification of the event – good or bad. Good synchronizations tend to occur when economies are doing well, and the fortune spills over. This is usually due to increased trade, or foreign investment.

Bad synchronization is the opposite – when things are so bad, the bad spills over. Once again, this spillover effect tends to shrink trade or reverse foreign investment. A synchronized downturn is difficult to contain, since it requires multiple regions to coordinate. This is usually why synchronized downturns take much longer for the economy to recover from.

World Bank researchers have observed multiple synchronized global recessions over the years. There’s been 14 global recessions since 1870, where global real per capita GDP has contracted. From the 1970s and onward, this began to happen in a fairly regular pattern – once every decade.

Largest Globally Synchronized Recession In History

A global synchronized slowdown began last year, but the pandemic turned it into a recession. World Bank is forecasting 92.9% of economies are on track to report recessions this year. This is higher than the Great Depression’s record, which saw 83.8% of economies enter recession at peak. Analysts from the organization note this is the fastest downturn in history.

Global Economies In Recession

The percent of global economies that have entered a recession, and World Bank’s forecast.

Source: World Bank, Better Dwelling.

World Bank expects the downturn to bottom next year, with recovery also starting next year. However, the recovery isn’t expected to bring the global economy back to pre-pandemic levels anytime soon. Further fall out is expected to appear in waves, as the initial shock spreads into more negative developments. The organization expects this to cause a financial crisis in some regions, especially those with high levels of debt.

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15 Comments

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  • Fight Back 6 months ago

    And some real estate agent will yell you this could only mean home prices will keep going up.

    We all know the truth, the government is cresting this bubble. They choose to transfer wealth from young to the unproductive old. They dont care about young people. Time to organize and fight is blood sucking system.

    • zalzon 6 months ago

      more like from the young and old to unproductive banksters

  • Every Canadian 6 months ago

    Condos and oil, baby!

  • Bill Ferguson 6 months ago

    This article has been posted to the “Metro Vancouver Housing Collapse” Facebook group; feel free to join and share in the information/discussions along with 9,222 others since 11/11/17.

    • Mark 6 months ago

      Hi Bill,
      I have followed your youtube channel and want to commend you on your mission. I would have liked to have joined your Facebook group. But i have not created an account on this platform for obvious reasons.

      But keep up the great work you are doing to keep the THINKERS informed.

  • Trader Jim 6 months ago

    Is the second wave no longer a thing now? We’re just coasting to the low, and back up?

  • Investor 6 months ago

    This is going to be a hard lesson for Nationalists who feel their country can survive by being a lone ranger. Times like call for coordination and cooperation amongst countries. The world has become too global for a single country to think they hold all the aces.

    • Liarslie 6 months ago

      Are you kidding me? so what are you saying ? decisions/ directions be given from top bottom? Isn’t that what we already have ? WHO dictating every country what to do when they don’t even know what they’re talking about and have been dropping the ball since they saw the light? Dude inform yourself…

  • Party on 6 months ago

    At the end of March, 2020 the total debt outstanding in Canada (bottom line of the Statistics Canada credit market summary data table) was $8.919 trillion.

    In the 1 year period from the end of March, 2019 to the end of March, 2020 it increased by $557 billion. This is an increase of 6.6%.

    Update on the total (household, business, and all levels of government) debt numbers in Canada and the size of the Bank of Canada’s balance sheet

    https://owecanada.blogspot.com/2020/06/at-end-of-march-2020-total-debt.html

  • Mark 6 months ago

    These folks from the World Bank are also part of the banksters. Their researchers have no clue what they are talking about. This fake PLANDEMIC is not real – it is being run by WEF and Gates Foundation in conjunction with WHO. They want to reset the world economy to their new world order.

    Too right this top to bottom control the Globalists and the Elitist’s have been running since 1971 when the FED dropped the GOLD standard and got into the business of Printing Money and became the World Bank.

    This has to stop! And we need to regroup to bring the control back to the PEOPLE. The present government order is not for “WE THE PEOPLE” but answering to the Whims of the Globalists.

    • Bailing in BC 6 months ago

      If you don’t know who the Mark is, you are the Mark

    • brash2020 6 months ago

      I’m not going to dive in to the remainder of your incoherent diatribe, but you do realize “we the people” is a reference to the US constitution, and this is a website discussing the Canadian economy and real estate. But I’m guessing if you can’t make that distinction I guess it’s no surprise you believe the rest of that nonsense.

      Or you’re a troll.

  • Mark 6 months ago

    Yes, you are 100% right about “We the people” is a reference to the US Constitution. And yes, we are in Canada so you may think it is different and does not apply.

    We have the Magna Carta, and what is it in simple terms?

    It was a document that gave certain rights to the English people. King John of England agreed to it on June 15, 1215. “The Magna Carta stated that the king must follow the law. He could not simply rule as he wished”

    So if you understand this correctly and although the Queen is Sovereign, the power has been transferred to what we know us the “government” which is elected by the “We the People”

    Governments are Servant to the people and NOT the other way round. You may have heard the term “Civil Servants” this implies everyone who works in the government.

    I hope you see the context is not any different when applied to any of populations of theWestern Democratic Countries.

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