The global economy is to shrink 3% in 2020 from a year before amid the coronavirus pandemic. This, as per the International Monetary Fund would mean worst setback for the world since the Great Depression in the 1930s.
The IMF has cut its projection by 6.3% point from its estimate back in January. However, if the coronavirus ends the global economy can bounce back in the second half of the year. IMF is projecting 5.8% growth next year.
It is expected that the Japanese economy will go down by 5.2%. This would be its worst downturn since the collapse of Lehman Brothers.
United States which is presently the epicenter of the pandemic will witness its economy shrink 5.9% in 2020.
The Washington-based institution in a report said, “The COVID-19 pandemic differs markedly from past triggers of downturns … there is a de facto shutdown of a significant portion of the economy.”
IMF chief economist Gita Gopinath said, “This makes the great lockdown the worst recession since the Great Depression, and far worse than the global financial crisis.
The total global gross domestic product loss over 2020 and 2021 from the epidemic would be almost $9 trillion.
She said, “This figure is “greater than the economies of Japan and Germany combined.”