Express
IMF Expects Worst Recession of $9 Trillion Loss to Global GDP Since the Great Depression
Summary: Cumulative loss to the global GDP in 2020 and 2021 could reach about $9 trillion, if the coronavirus epidemic reaches its peak in most countries before the second half of 2020 and fades within the year, according to the April World Economic Outlook of the IMF.
Cumulative loss to the global GDP in 2020 and 2021 could reach about $9 trillion, if the coronavirus epidemic reaches its peak in most countries before the second half of 2020 and fades within the year, according to the April World Economic Outlook of the IMF. This number is larger than the economies of Japan and Germany combined, as Gita Gopinath writes in her blog for the IMF. Gopinath works as the chief economist of the organization.
The April World Economic Outlook of the International Monetary Fund projects the world economy to “contrast sharply by -3 percent in 2020.” This estimate is 6.3% lower than that from January 2020. “This makes the Great Lockdown the worst recession since the Great Depression, and far worse than the Global Financial Crisis,” Gita Gopinath writes.
The IMF is about to mobilize its $1 trillion loan capacity. “We are actively deploying our 1-trillion-dollar lending capacity to support vulnerable countries, including through rapid-disbursing emergency financing and debt service relief to our poorest member countries, and we are calling on official bilateral creditors to do the same,” writes Gopinath.
By Dawn Wu
(Image from flickr.com)
Tags: GDP,Global Economy,IMF
Link: IMF Expects Worst Recession of $9 Trillion Loss to Global GDP Since the Great Depression [Copy]
