#GlobalEconomy; #WorstThisYear; #1930GreatDepression; #IMF
Ottawa, Apr 14 (Canadian-Media): Crushed by the coronavirus outbreak, global economy will see its worst year in 2020 since the Great Depression of the 1930s, the International Monetary Fund (IMF) says in its latest forecast, media reports said.
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IMF said Tuesday that the shrinking of this year's global economy to three percent is far worse than its 0.1 percent dip seen in the 2oo9 Great Recession and added that its expected rebound in 2021 with 5.8 percent growth is uncertain.
In its January forecast, before public health and economic growth worldwide were threatened by COVID-19, IMF had forecast this year's global growth of 3.3 percent.
But the stringent measures to contain the virus such as lockdowns, business shutdowns, social distancing and travel restrictions had resulted in the near-standstill economic activity across much of the world.
Gita Gopinath, the IMF's chief economist said the cumulative loss of global economy could amount to $9 trillion.
Worldwide trade will shrink 11 percent this year, the IMF predicts, and then grow 8.4 percent in 2021.
Last week, the IMF's managing director, Kristalina Georgieva, said low-income nations across Africa, Latin America and much of Asia were at high risk.
Realizing the unaffordability of some countries for aggressive rescue plans, the IMF is prepared, said Georgieva, to loan $1 trillion to support nations that need help in dealing with the pandemic.
The IMF is also calling on countries to work co-operatively to fight the pandemic.