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 (GDP) expansion by the end of this year. The IMF’s World Economic Outlook report for April describes “The Great Lockdown” as a “necessary protection” that is helping to curb the COVID-19 pandemic while simultaneously crushing economic activity on a global level. The IMF did provide a glimmer of economic hope, however, showing a 5.8 percent “partial rebound” by the end of 2021.
