Global economy to shrink by 3% in 2020 amid COVID-19 pandemic: IMF
Arirang News
2020-04-15
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IMF, 올해 세계성장률 -3% 전망…"대공황후 근 90년만에 최악"
"The Great Lockdown."
That's how the International Monetary Fund is describing the current state of the global economy, which it warned is on track for its sharpest downturn in nearly a century.
For the first time since the Global Depression,... it says ALL advanced, emerging and developing countries are going to enter recession.
Kim Hyo-sun reports.
The global economy is expected to shrink three percent this year as the international community fights the COVID-19 pandemic.
That's according to the IMF,... which explained Tuesday that this will be the steepest downturn since the Great Depression of the 1930s.
"So now under the assumption that the pandemic and required containment peaks in the second quarter in most countries in the world and then recedes in the second half of this year, we are projecting global growth in 2020 to fall to minus 3 percent. Now, this is a downgrade of 6.3 percentage points from January 2020. A major revision over a very short period of time. This makes the great lockdown the worst recession since the Great Depression and far worse than the global financial crises."
The IMF also explained the cumulative loss of global GDP from the pandemic over the course of 2020 and 2021 could amount to nine trillion U.S. dollars,... greater than the economies of Japan and Germany combined.
Describing the situation as (quote) "the Great Lockdown,"... the IMF added that both developed and developing countries will face economic difficulties.
"So for the first time since the Great Depression, both advanced economies and emerging and developing economies are in recession. For 2020 growth in advanced economies is projected at minus 6 percent. Emerging market and developing economies, which typically have normal growth levels well above advanced economies, are also projected to have negative growth of minus 1 percent and minus 2.2 percent if you exclude China."
The IMF also slashed South Korea's economic outlook for this year to minus 1-point-2 percent after an initial prediction of 2-percent growth last October.
The organization expects the global economy to rebound in 2021 with 5-point-8 percent growth,... but it acknowledges that prospects for next year are clouded by uncertainty as of now.
Kim Hyo-sun, Arirang News.
"The Great Lockdown."
That's how the International Monetary Fund is describing the current state of the global economy, which it warned is on track for its sharpest downturn in nearly a century.
For the first time since the Global Depression,... it says ALL advanced, emerging and developing countries are going to enter recession.
Kim Hyo-sun reports.
The global economy is expected to shrink three percent this year as the international community fights the COVID-19 pandemic.
That's according to the IMF,... which explained Tuesday that this will be the steepest downturn since the Great Depression of the 1930s.
"So now under the assumption that the pandemic and required containment peaks in the second quarter in most countries in the world and then recedes in the second half of this year, we are projecting global growth in 2020 to fall to minus 3 percent. Now, this is a downgrade of 6.3 percentage points from January 2020. A major revision over a very short period of time. This makes the great lockdown the worst recession since the Great Depression and far worse than the global financial crises."
The IMF also explained the cumulative loss of global GDP from the pandemic over the course of 2020 and 2021 could amount to nine trillion U.S. dollars,... greater than the economies of Japan and Germany combined.
Describing the situation as (quote) "the Great Lockdown,"... the IMF added that both developed and developing countries will face economic difficulties.
"So for the first time since the Great Depression, both advanced economies and emerging and developing economies are in recession. For 2020 growth in advanced economies is projected at minus 6 percent. Emerging market and developing economies, which typically have normal growth levels well above advanced economies, are also projected to have negative growth of minus 1 percent and minus 2.2 percent if you exclude China."
The IMF also slashed South Korea's economic outlook for this year to minus 1-point-2 percent after an initial prediction of 2-percent growth last October.
The organization expects the global economy to rebound in 2021 with 5-point-8 percent growth,... but it acknowledges that prospects for next year are clouded by uncertainty as of now.
Kim Hyo-sun, Arirang News.
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