Global economy will suffer worst year since Great Depression of 1930s, IMF says

International Monetary Fund chief economist Gita Gopinath.
Esteban Felix/The Associated Press

Date Published: April 14, 2020

Source: CBC

The International Monetary Fund (IMF) has forecasted that the world economy will suffer its worst year since the Great Depression. The IMF expects the global economy to shrink by three percent this year, a stark difference to its previous forecast in January before the threat of COVID-19. The IMF predicts economic contractions this year for the U.S., Canada, the European countries that share the euro currency, Japan, and the U.K., and 1.2 percent growth for China, whose economy has begun to open up before that of other countries. The IMF’s managing director, Kristalina Georgieva, said that emerging markets and low income nations were at high risk and the IMF has since approved $500 million to cancel six months of debt payments for 25 impoverished countries. The IMF has cautioned that its latest forecast is clouded by many unknowns. The IMF has also asked for international cooperation to fight the pandemic and has said that it is prepared to commit $1 trillion to support countries that need help in dealing with the pandemic.

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Summary by: Christina Blagojevic