IMF Expects Global Economy To Shrink 3% This Year

Xinhua News Agency, Washington, April 14th. The International Monetary Fund (IMF) released a new issue of the World Economic Outlook on the 14th. It is expected that the global economy will shrink by 3% this year, and the degree of recession far exceeds the economic downturn caused by the 2008 international financial crisis. , The worst global economic recession since the Great Depression in the 1930s. The report said that since the IMF released the updated contents of the "World Economic Outlook Report" in January, the global economic situation has changed drastically, and the public health crisis caused by the new crown epidemic has caused a huge impact on economic activities. Based on the assumption that the epidemic situation in most countries in the world will peak in the second quarter of this year and subside in the second half of the year, the IMF predicts that the global economy will shrink by 3% in 2020, a sharp reduction of 6.3 percentage points from the 3.3% growth forecast in January. The report predicts that this year the economy of advanced economies will shrink by 6.1%, and that of emerging markets and developing economies will shrink by 1%. The report predicts that the US economy will contract by 5.9% this year, the euro zone economy will contract by 7.5%, and the Japanese economy will contract by 5.2%. The report points out that under more unfavorable scenario assumptions, the global economic recession will be more severe. If this year's epidemic lasts longer, this year's global GDP will be about 3% lower than the baseline scenario forecast; if the epidemic continues into 2021, next year's global GDP will be about 8% lower than the baseline scenario forecast. IMF chief economist Gita Gopinat said that the duration and economic impact of the new crown epidemic are still subject to significant uncertainty. At the same time, many countries are also facing many factors such as public health crises, financial crises, and sharp declines in commodity prices. Multiple crises intertwined. Multilateral cooperation is essential to curb the spread of the epidemic and support the healthy recovery of the global economy.