IMF Says Global Economy is ‘Almost Certainly’ in a Recession
April 14, 2020
The coronavirus has “almost certainly” put the world economy into a recession, according to a new report from the International Monetary Fund, noting that the economic contraction would be more severe than any since the Great Depression.
The IMF estimates that the global economy will contract by 3% in 2020, compared with a contraction of 0.1% at the height of the previous financial crisis in 2009. The U.S. economy will shrink by 5.9%, more than double 2009’s 2.5% decline. The eurozone is expected to contract 7.5%, as compared to its 4.5% drop in 2009.
The impact will not only be more severe, but more widespread. During the previous recession, 40% of the world’s nations saw per capita growth. Only 10% of nations are expected to see growth this year.
The good news is that the IMF sees a quick recovery, projecting 5.8% growth in 2021. Still, these projections would mean the global economy will have its worst two-year period since the early 1980s.