Global economy facing deepest crisis since 1930s: IMF
19:52
The International Monetary Fund (IMF) has estimated that due to the effects of the coronavirus pandemic, the world economy will probably undergo the deepest collapse since the 1930s great crisis that erupted after the 1929 stock market crash.
According to the IMF, in 2020 global GDP will shrink by 3 percent and will probably increase by 5.8 percent in 2021. However, the fund notes that this value may change significantly.
According to the best scenario that the IMF is considering, the global economy will lose $9 trillion over two years.
The economic crisis associated with the coronavirus pandemic will reach its most severe condition in the second quarter of 2020. In the second half of the year the impact will be weaker as the economies should start to recover.
As early as April 9, the IMF head Kristalina Georgiev spoke about the most serious crisis since the 1930s. She also pointed out that global economic growth in 2020 would be ‘strongly negative’. She added that we are also dealing with unprecedented uncertainty regarding the scale and duration of this crisis.
At best, the IMF expects a "partial recovery" in 2021, but only if the pandemic begins to pull back in the next quarter of this year. However, if it lasts until the end of 2020, then the next year will be worse in economic terms.
As early as in January, the IMF predicted that the global economy would grow by 3.3 percent in 2020 and by 3.4 percent in 2021.
