IMF predicts global economy downturn

By Elina Jonas Ruzindaza
On 26 June 2020 at 11:29

International Monetary Fund (IMF) has forecast a slowdown in global economic growth due to the effects of the Coronavirus pandemic, warning that there will be a surge in debt in both developed and developing countries.

The world economy is projected to shrink to 4.9% below zero in 2020, at a rate of less than 1.9% below zero compared to the IMF’s standstill in April and economic recovery will not be slow.

Gita Gopinath, Chief Economist at the IMF, said that compared to the April forecast, it shows a slowdown in the economy in 2020, and will continue in 2021.

She went on to say that the world economy in two years will lose $ 12 billion due to Coronavirus.

The World Bank released a report this month stating that global gross domestic product by 2020 will fall to 5.2% below zero. Developed countries will be reduced by 7% below zero; of the European Union using the euro will fall by 9.1% below zero.

U.S. gross domestic product will fall 6.1% below zero; the Japanese down 6.1% below zero; the Chinese reach a rate of 1% above zero. Sub-Saharan Africa’s gross domestic product will fall by 5% below zero.

IMF predicts that the global economy will slow sharply in 2020