Conversation Class
Student: Esa Veteli
Vocabulary
Downturn -Noun - a decline in business or economic activity
Eg. The market is experiencing a downturn.
Recession – Noun- A period of economic decline
Eg. Brazil is going through its worst recession since the Great Depression.
Contraction - Noun- The action or process of becoming smaller
Eg. A contraction in the local economy has hurt many small businesses.
Devastate - Verb- T o damage or destroy; to cause severe sadness or shock
Eg. She was devastated by the loss of her husband.
Developing - Adjective- (of a country) seeking to become more economically advanced
Eg. Many children live in poverty in developing countries.
Rebound - Verb- To return to a higher value, level, etc. after declining
Eg. Oil prices have started rebounding after hitting an all-time low in February.
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Article
World Bank Predicts Largest Global Downturn Since 1940s
The World Bank has predicted that global economic activity will shrink by 5.2% this
year, the deepest recession since a 13.8% global contraction in 1945-46 at the end of
World War II. The 5.2% downturn will be the fourth worst global downturn over the past
150 years, exceeded only by the Great Depression of the 1930s and the periods after
World War I and World War II, when the economies of many countries were devastated.
Because of the steep contraction, incomes are expected to decline in more than 90% of
emerging markets and developing countries. For all countries, the drop incomes is
expected to average 6.2%, much larger than the 2.9% fall during the 2009 financial
recession. World Bank economists also say they expect the number of people in extreme
poverty could grow by between 70 million and 100 million this year.
In January, the World Bank had estimated that the world economy would grow by a
modest 2.5% this year. For the United States, the updated World Bank forecast is for
GDP to fall 7% this year, before growing 3.9% in 2021. For China, the world's second-
largest economy, the World Bank expects growth will slow this year to 1% but will
rebound to 6.9% in 2021. For the 19 European countries that use the euro currency, the
World Bank predicts a drop of 9.1% this year followed by growth of 4% next year.
World Bank economists cautioned that their forecast was based on an assumption that the
worst of the coronavirus outbreak was coming to an end and economies would pick up
fairly quickly once governments begin to reopen. If there is a second wave of the virus
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that disrupts economic activity later this year, then growth will fall even further and the
rebound next year will be weaker, the World Bank analysts said.
Discussion
1. What are your thoughts on the World Bank's economic forecast?
2. How has your place of work been impacted by the coronavirus pandemic?
3. What industries do you think will be worst affected by COVID-19?
4. Are you satisfied with your country's response to the coronavirus outbreak so
far? Why? Why not?
5. Would you say that your country's economy has gotten stronger or weaker
under your current leader?
6. Did you study economics in school? If so, did you enjoy it? If not, why not?
7. What industries would you say are most important to your country's economy?
8. In your opinion, what are the biggest economic problems in your country?
Why do you think so?
9. Which country do you imagine will have the world's strongest economy 50
years from now?
10. How would you describe your country's relationship with China and the US?
Please explain your answer.
