The International Monetary Fund (IMF) has waved the worst recession the world has known since 1930. He also issued a warning predicting that most economies would fall by 5 per cent even after a recovery in 2021 as economic activity returned to normal.
The IMF predicted that global growth would contract by 3% but then rebound to 5.8% next year if the epidemic faded in the second half of 2020 under containment efforts.
The imf added that the world’s largest economy is set to contract by about 6 per cent, which means the unemployment rate is estimated to rise from 3.7 per cent in 2019 to 10.4 per cent this year. The report, released by the Washington-based Foundation, predicts that the global economy will grow by about 5.8 percent in 2021 as economic activity returns.
The IMF forecasts that U.S. GDP will decline by about 5.9 percent this year, while the eurozone economy is expected to contract by 7.5 percent, but China may grow by about 1.2 percent.
Meanwhile, the INTERNATIONAL Monetary Fund (IMF) has dramatically reduced its growth forecast in the eurozone as closures aimed at containing the emerging Corona virus have decimated the European economy. The International Foundation predicted that the eurozone economy would fall sharply, unprecedented since the Great Depression of the 1930s.
Britain, which withdrew from the European Union in January and has never been in the eurozone, is also expected to contract at 6.5 percent. The IMF suggested that the economy in the European region as a whole would be the worst in the world. However, he said the economic collapse caused by the Coved-19 epidemic would fade in the second half of 2020, with the gradual lifting of its containment measures. The 19 countries using the euro will begin to recover after that, but at a much slower pace as the IMF forecasts growth of 4.7 percent in 2021.
The IMF said the French economy would decline by 7.2 percent instead of improving by 1.3 percent. But French Finance Minister Bruno Le Maire predicted a worse eight percent contraction as his country announced on Monday an extension of the comprehensive closure by an additional month until May 11th.
According to the IMF, Germany’s economy, which was basically growing slightly as a result of the U.S.-China trade war, would shrink by seven percent. The Fund noted that Italy, which is among the countries most affected by the virus, would be severely affected economically. The Italian economy is heading for a 9.1 percent decline in 2020, followed by an improvement of just five percent next year. The Fund urged “meaningful European support” for the countries most affected by what it described as a “common shock coming from abroad”.