Global economy to shrink by 3% in 2020 amid COVID-19 pandemic: IMF
- 4 years ago
IMF, 올해 세계성장률 -3% 전망…"대공황후 근 90년만에 최악"
The International Monetary Fund warns the global economy is on track for its sharpest downturn in nearly a century.
It described the current situation as "the Great Lockdown."
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... This makes the great lockdown the worst recession since the Great Depression and far worse than the global financial crises."
The IMF explained this is a significant drop of 6-point-3 percentage points from its previous forecast in January.
It 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.
However, it expects a so-called "V-shape recovery" for South Korea and the global economy next year,... forecasting 3-point-4 and 5-point-8 percent growth for South Korea and the world, respectively.
At the same time,... it acknowledged that prospects for 2021 remain clouded by uncertainty.
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 highlighted that the international community needs to carry out monetary, fiscal, and financial policies together with the aim of cushioning the impact of the COVID-19 shock as well as to ensure a sustainable recovery once the pandemic is under control.
Kim Hyo-sun, Arirang News.
The International Monetary Fund warns the global economy is on track for its sharpest downturn in nearly a century.
It described the current situation as "the Great Lockdown."
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... This makes the great lockdown the worst recession since the Great Depression and far worse than the global financial crises."
The IMF explained this is a significant drop of 6-point-3 percentage points from its previous forecast in January.
It 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.
However, it expects a so-called "V-shape recovery" for South Korea and the global economy next year,... forecasting 3-point-4 and 5-point-8 percent growth for South Korea and the world, respectively.
At the same time,... it acknowledged that prospects for 2021 remain clouded by uncertainty.
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 highlighted that the international community needs to carry out monetary, fiscal, and financial policies together with the aim of cushioning the impact of the COVID-19 shock as well as to ensure a sustainable recovery once the pandemic is under control.
Kim Hyo-sun, Arirang News.