CENTRAL NEWS
The coronavirus pandemic crisis will give way to “the worst recession since the Great Depression” of the 1930s, announced IMF chief economist Gita Gopinath in a revision of her agency’s World Economic Outlook.
On Wednesday, the International Monetary Fund estimated that the global economy would shrink by 3 percent in 2020, a slowdown 30 times worse than what the world experienced in 2009, when the global financial crisis caused growth to shrink by 0.1 percent.
“The implications for countries that typically rely on foreign aid are particularly dire,” the IMF said.
“Emerging and frontier market economies are facing the perfect storm,” the fund said in its Global Financial Stability report. “Even as their economies are crippled by the global shutdown, emerging market countries have watched as global investors shifted unprecedented amounts of money away from them in an effort to find a haven.”
