Washington,
USA
The International Monetary Fund has projected that the global economy will shrink by 3.0% in 2020, a year hit third by the COVID-19 pandemic, which would mark the steepest downturn since the Great Depression of the 1930s.
In
its 2020 World Economic Outlook, the organization however predicted a partial
rebound in 2021, with the world economy growing at a 5.8% rate, but noted that
the forecasts were marked by “extreme uncertainty”, warning that outcomes could
be far worse depending on the course of the pandemic.
“This
recovery in 2021 is only partial as the level of economic activity is projected
to remain below the level we had projected for 2021, before the virus hit,”
Gita Gopinath, the IMF’s chief economist, said in a statement.
The
COVID-19 pandemic has affected global economies in varying measures as
countries battle to stop the disease.
Many
countries have imposed lockdowns and limited movement among other measures,
moves that ultimately affected economies.
As
of Tuesday 14 April, the world had recorded more than 1.9 million COVID-19
cases with over 121,000 deaths.
According
to the IMF, a longer pandemic that lasts through the third quarter could cause
a further 3% contraction in 2020 and a slower recovery in 2021.
“It
is very likely that this year the global economy will experience its worst
recession since the Great Depression, surpassing that seen during the global
financial crisis a decade ago,” the IMF said in its report. “The Great
Lockdown, as one might call it, is projected to shrink global growth
dramatically.”
IMF
Managing Director Kristalina Georgieva warned last week that some $8 trillion
in fiscal stimulus being poured in by governments to stave off collapse was not
likely to be enough.
The
organization said some countries may need to turn to temporary limits on
capital outflows. - Africa
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