IMF Predicts Worst Slump Since Great Depression

The global economy will likely suffer its worst contraction this year since the Great Depression due to the coronavirus pandemic, with prospects for a recovery in 2021 shrouded in “extreme uncertainty,” the International Monetary Fund warned Tuesday.

In its latest World Economic Outlook report, the IMF said it now expects global gross domestic product to contract by 3% in 2020 — a downgrade of 6.3 percentage points from January 2020, when it forecast growth of 3.3% for the year.

The revised forecast assumes the pandemic and the required containment resulting from it peak in the second quarter for most countries and recede in the second half of this year.

“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,” Gita Gopinath, the IMF’s chief economist, said in the report.

For

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World Bank, IMF Push to Consolidate Patchwork Approach to Coronavirus Crisis

In times of crisis, the world’s economic policy makers have often gathered at G-20 summits and at the semiannual meetings of the International Monetary Fund and World Bank to formulate global rescues. But not this time.

No officials will travel to Washington, D.C., for meetings that had been scheduled this week. Instead, finance ministers and central bankers—like most of the world’s office dwellers—will hold their meetings virtually, attempting to combat the most severe global downturn since the Great Depression, via teleconferences…

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