We inform you that on this website we use our own and third-party cookies to collect information about its use, improve our services and, where appropriate, display advertising by analyzing your browsing habits. You can expressly accept its use by pressing the "ACCEPT" button or configure and select the cookies you want to accept or reject in the settings. You can also get more information about our cookie policy here.

The global fashion business journal

Aug 12, 20206:24am

IMF: world economy to shrink 3% in 2020 in worst setback since Great Depression

The IMF expects a “partial” recovery in 2021. The cumulative loss to global GDP over 2020 and 2021 could be around 9 trillion dollars.

Apr 15, 2020 — 5:14pm
Mds
Save

IMF: world economy to shrink 3% in 2020 in worst setback since Great Depression

Gita Gopinath, Chief Economist of the IMF

 

 

The Great Depression, the Great Recession, and now, the Great Lockdown. The International Monetary Fund (IMF) expects world economy to shrink 3% this year as a consequence of the containment measures taken to control the coronavirus pandemic.

This makes what the IMF has called the Great Lockdown, the worst recession since the Great Depression, and far worse than the Global Financial Crisis.

 

For 2021, the IMF expects global economy to grow 5.8%. However, “this recovery is only partial as the level of economic activity is projected to remain below the level we had projected for 2021, before the virus hit,” says Gita Gopinath, Chief Economist of the IMF.

 

 

 

 

The cumulative loss to global GDP over 2020 and 2021 from the pandemic crisis could be around 9 trillion dollars, greater than the economies of Japan and Germany, combined.

The IMF has made this outlook assuming the pandemic will fade in the second half of 2020 and that policy actions taken around the world are effective in preventing widespread firm bankruptcies, extended job losses, and system-wide financial strains.

 

However, Gopinath says that “the pandemic may not recede in the second half of this year, leading to longer durations of containment, worsening financial conditions, and further breakdowns of global supply chains.” In such cases, global GDP would fall even further: an additional 3% in 2020 if the pandemic is more protracted this year, while, if the pandemic continues into 2021, it may fall next year by an additional 8% compared to IMF’s baseline scenario.

Advertising
Participation rules

info@themds.com

 

Validation policy for comments: 

 
MDS does not perform prior verification for the publication of comments. However, to prevent anonymous comments from affecting the rights of third parties without the ability to reply, all comments require a valid email address, which won’t be visible or shared.
 
Enter your name and email address to be able to comment on this news: once you click on the link you will find within your verification email, your comment will be published.

0 comments — Be the first to comment
...