World Bank: Global GDP Will Fall 5.2% in 2020, but Rebound by 4.2% in 2021

Author:
Publish date:
Adobe Stock Image

Adobe Stock Image

The World Bank is forecasting a 5.2 percent decline in Gross Domestic Product in 2020, following 2.4 percent growth in 2019.

That would be the worst contraction in worldwide growth since the aftermath of World War II, wrote Chad Moutray, chief economist for the National Association of Manufacturers in a monthly report detailing trends.

World Bank economists predict a 6.1 percent decline in U.S. GDP in 2020, and forecast China to grow by 1 percent for the year.

The Eurozone is expected to contract by 9.1 percent.

However, the World Bank predicts a rebound in 2021, with worldwide GDP growth jumping 4.2 percent — the United States economy is forecast to expand 4 percent next year; China is expected to return to 6.9 percent growth; and Europe is predicted to grow 4.5 percent.

Manufacturing data suggests that manufacturers are “cautiously upbeat for a rebound in production over the next six months, albeit with very modest growth,” wrote Moutray.

The J.P. Morgan Global Manufacturing PMI rebounded a bit, from 39.6 in April to 42.4 in May.

“Overall, the sector continues to cope with severe operational and demand disruptions worldwide due to covid-19, with activity still declining sharply despite some progress,” wrote Moutray.

New orders for the month rose from 31.5 to 36.3, output was up from 32.5 to 39.2, and employment edged up from 41.5 to 43.2.

The index for future output moved to 52.1 from 47.1 — the first time that index had dipped below 50 since it was introduced in July 2012, said Moutray. 

Related

Everglades Expands Executive Team

The Edgewater, Fla.-based manufacturer adds positions in finance, sales and marketing and operations.

Heed Caution While Refueling

Ethanol can be back in a big way, and insufficent labeling at the pumps could lead to problems for your marine powerplant. And the MRAA’s voices support for the 30 by 30 initaitive.

Training the Next Generation

Crest Pontoons will donate a complete boat and trailer to a local high school’s raffle to raise money for its vocational programs.

An “Above Average” Hurricane Season

BoatUS wants to help boaters get ready for the 2021 Atlantic hurricane season, which begins June 1.

Webasto Produces 8,000th Marine Roof

The German company designs and builds a number of glass roof solutions for boats.

A Strong Q2 for Johnson Outdoors

With jumps in nearly all its business segments, the recreation manufacturer saw net sales increase by 26 percent.

Thrust Issues

Is it time for the industry to standardize trolling motor ratings?