For the first time in modern history, the forecast has changed dramatically in such a short time
IMF chief Kristalina Georgieva said the economic crisis caused by COVID-19 has overtaken the most pessimistic scenarios, as the coronovirus epidemic affects many economies more than before.
“The data coming from many countries should have been according to the worst forecasts. It is very likely that we will publish the updated forecast around June. At the moment, our expectations say that there will be more bad news about the vision for 2020, ”said Georgieva.
A month ago, the IMF predicted that shutting down a business due to the spread of the virus would cause the world to suffer the deepest recession since the Great Recession of the 1930s, when a 3% drop in GDP production she came.
For the first time in modern history, the forecast has changed dramatically in such a short period of time. But the IMF maintains optimism and confidence at its best: it predicted a rebound of about 6% next year. However, he warned that, first, it does not compensate for the decline, and secondly, it will only happen if the virus does not return in the second wave and quarantine does not have to be re-recorded.
Against the backdrop of IMF statements, economic activity in China declined for the first time in nearly half a century, with the European Union experiencing the largest decline in its entire existence, and the world’s largest US economy struggling with unprecedented unemployment, While a long period of ten years of recovery in its history came to an end.
Summary PAYSPACE magazine
Recall, IMF Managing Director Cristalina Georgieva talked about the Global Policy Agenda to address the current global economic crisis caused by the coronovirus epidemic.
Georgiva stressed that the world community should raise more than $ 8 trillion for various emergency measures.
“Special times require special actions, and this is what is presented in our global economic policy program,” the director said. According to him, the IMF identifies three priorities in overcoming the crisis.
Read: Quarantine and Economics: What Business Expects.
By content: Reuters