IMF: WORLD ECONOMY WILL SUFFER ITS WORST YEAR SINCE DIRTY THIRTIES
Apr 14, 2020
By Bob Komsic
The global economy is now expected to shrink 3% this year because of COVID-19 before rebounding with 5.8% growth next year, however, the International Monetary Fund says prospects for a rebound in 2021 are clouded by uncertainty.
The IMF’s latest forecast calls 2020 the worst year since the Great Depression of the 1930s.
In its previous forecast in January before the novel coronavirus blew up across the world, the international lending group had predicted moderate global growth of 3.3% this year.
”The world has been put in a great lockdown,” said IMF chief economist Gita Gopinath.
”This is a crisis like no other.”
The IMF says Canada’s economy will shrink by 6.2% this year followed by growth of 4.2% in 2021.
Gopinath says the cumulative loss to the world’s gross domestic product could total $9-trillion — more than the economies of Germany and Japan combined.