The International Monetary Fund said the global economy is set to suffer the worst financial crisis since the Great Depression this year as governments worldwide deal with the coronavirus pandemic.
The Washington-based IMF is the latest financial organization placing expectations that the global economy will contract, predicting a 3 percent shrink in 2020. This prediction stands in stark contrast to its January forecast there would be a 3.3 percent global gross domestic product expansion by the end of this year.
The IMF report highlights the unprecedented actions and impact of the coronavirus economic lockdown, using repeated wartime comparisons to illustrate that"uncertainty is exceptionally high" in markets across the world. The World Economic Outlook report for this year predicts the global economy will"contract sharply" in the coming months,"much worse than during the 2008-09 financial crisis.
A Bloomberg Economics tracking model created last year was updated this past week to show a"100 percent" chance of a U.S. recession within 12 months. The prediction comes off the United States' longest-running economic expansion. The model's 2020 spike into the range of complete certainty of a U.S. recession has only been paralleled in the months after the September 11, 2001 attacks and in the years surrounding the start of the 2008 Great Recession.
The IMF forecast still leaves open a partial recovery of GDP shrinkage on the global level the following year. However, the predictions note that government policies and protections must be enacted to prevent even worse outcomes from forming over the next several months, particularly if there is a"second wave" of coronavirus cases and deaths.
France Dernières Nouvelles, France Actualités
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