The global economy is expected to contract by 3% this year.
The IMF said on Tuesday that the world economy is likely to contract by 3% this year, the deepest decline since the great depression in the 1930s and far worse than the 0.1% contraction in the great recession of 2009.
The world economic Outlook report – the first such document issued by the IMF since the coronavirus pandemic began – states that the world economy will begin to grow in 2021. Growth is expected at 5.8%. However, the prospects for recovery depend on the duration of the pandemic and the impact on financial and commodity markets.
In the latest forecast, published in January, before the coronavirus became a global threat, the International Monetary Fund expected the world economy to grow by 3.3% in 2020.
Measures taken by authorities around the world to combat the spread of the virus – including restrictions on movement in cities and air flights, forced closure of companies – have led to a widespread halt in trade.
The Eurozone economy is expected to contract by 7.5% this year, the US by 5.9%, Japan by 5.2%, and the UK by 6.5%.
At the same time, the only country where the economy will grow this year will be China, where the first outbreak of coronavirus began. The Chinese economy is expected to grow by 1.2% in 2020, according to the IMF. This is because China is starting to open earlier than all other countries.