On April 14th, 2020, The IMF released its World Economic Outlook that takes into account the COVID-19 pandemic, referring to it as “the Great Lockdown.” The IMF predicts that the world economy will experience the worst recession since the great depression of the 1930s.
Under the assumption that the COVID-19 pandemic peaks in Q2 of 2020 globally, and slows down the economy in the second half of 2020, the IMF predicts that world output in 2020 will fall by -3%. It is projected that while both advanced economies and emerging market & developing economies will see sharp declines, advanced economies will experience the lowest growth rates. The Eurozone will be hit the hardest with projected growth of negative 7.5%, while both the US and Canada show a projected decline of 6.2% and 5.9% in 2020, respectively.
Under the assumption that the containment efforts are successful and government policy actions taken around the world are effective, the IMF projects global growth in 2021 to rebound to 5.8%. - Maryna Ivus | email