The World Bank: Corona pandemic leads to the largest global recession

The World Bank announced that the Corona pandemic (covid-19) affected demand and supply of primary commodities, as the actions of closures taken by countries to limit the spread of the virus contributed to stopping economic growth and thus affected the primary commodities associated with the transport sector.
And as countries around the world respond to the health emergency caused by the Coronavirus pandemic, the economic effects of stopping almost all activities have immediate repercussions on the world's primary commodity markets, and are likely to continue to affect them for several months to come.
In this regard, a bank brochure says that the pandemic affected demand and supply of primary commodities. These impacts are evident directly due to the closures aimed at curbing the spread of the virus, to slowing the pace of growth, and are likely to lead to the largest global recession in decades.
The full impact of a pandemic on commodity markets will depend on the amount of severity, the length of time, and how countries and the international community respond to it. The pandemic is likely to lead to permanent changes in demand and supply of primary commodities, especially for supply chains that transport those commodities from producers to consumers around the world.
While the prices of agricultural crops are less related to economic growth, and there have been slight declines during the first months of the year, and global prices of agricultural crops are expected to remain generally stable in 2020, as production levels and stocks of most of the major food items have reached record highs.
Although markets are oversupply, export restrictions may harm food security in importing countries. The World Bank has followed the example of other organizations by calling for collective action to keep the food trade continuing to flow between countries.
More generally, the effects of the Corona virus pandemic on commodity markets may lead to longer-term changes. Transportation costs are likely to increase due to the additional requirements for crossing borders. The increase in trade costs will particularly affect agriculture, food commodities and textiles. Decisions to store specific commodities may affect the flow of trade and may have an impact on world prices.
The bank said in the statement that emerging market economies and developing countries that depend on primary commodities are among the most vulnerable to the economic impacts of the pandemic, and in addition to the health and human losses that these countries may be exposed to, the effects of the global economic recession, the decline in export demand, and the disruption of supply chains All of them will harm the economies of these countries.