ongoing financial year. The bank expects emerging and developing economies to shrink 2.5% in 2020, their first contraction as a group in at least sixty years.
Among the broader regions, Latin America and the Carribean are expected to suffer the biggest drop (-7.2) with sharp contractions in Brazil (-8%) and Mexico (-7.5%).
East Asia and Pacific is expected to emerge relatively unscathed (-0.5) thanks to their close ties to China, which is expected to expand its economic output by 1%.
South Asia is expected to contract -2.7% in 2020.Despite declining growth prospects, financial metrics have seen slight improvements across emerging economies, with foreign funds returning to invest once again.