Tag: world economy

IMF: Coronavirus will lead to “worst recession since the Great Depression”

Axios logoThe coronavirus pandemic will bring about the worst economic downturn since the Great Depression, the International Monetary Fund projected Tuesday in its latest world economic outlook.

Why it matters: The organization expects a recession “far worse” than the 2008 financial crisis. In a revision to its earlier forecast, the IMF said global GDP growth will fall to -3% this year, a drastic downgrade from its forecast of +6.3% in January.

By the numbers: Global GDP will face a cumulative loss of about $9 trillion — larger than the economies of Japan and Germany combined.

  • Growth in advanced economies is projected to be -6.1%.
  • Emerging markets are projected to have growth rates of -1.0%, and -2.2 percent if China is excluded.
  • Income per capita is expected to shrink for over 170 countries.

If the World Economy Is Looking So Great, Why Are Global Policymakers So Gloomy?

The following article by Neil Irwin was posted on the New York Times website April 19 2018:

As officials gather for the I.M.F. and World Bank meetings in Washington, worries about trade and debt are on the rise.

The World Economic Outlook news conference at the headquarters of the International Monetary Fund in Washington. “The present good times will not last for long,” said Maurice Obstfeld, chief economist of the IMF. Credit: Shawn Thew/EPA, via Shutterstock

By a lot of measures, these are very good times for the global economy. Nearly every major region of the planet is enjoying solid growth and prosperity simultaneously for the first time in a decade.

Yet the world’s top economic policymakers, who are gathered in Washington this week, are sounding awfully glum.

“The present good times will not last for long,” said Maurice Obstfeld, chief economist of the International Monetary Fund, as he released the fund’s latest projections, which foresee a solid 3.9 percent expansion of the global economy in 2018. Continue reading “If the World Economy Is Looking So Great, Why Are Global Policymakers So Gloomy?”