IMF: Global Economy Is to Face the Worst Year Since the Great Depression

The global economy is expected to contract by 3% this year. According the International Monetary Fund forecasts the 2020 will be the global economy’s worst year since the Great Depression due to the coronavirus pandemic. Global economy is likely to contract by 3% this year, the deepest fall since the Great Depression in the 1930s and far worse than the 0.1% decline in the year of the Great Recession in 2009 year, IMF announced on Tuesday. The World Economic Outlook report is the first such document issued by the IMF after the coronavirus pandemic outbreak; it states that in 2021 the world economy will begin to grow. Growth is expected at 5.8%. However, the prospects for recovery depend on the pandemic duration and the impact exerted on financial and commodity markets. In the latest forecast published in January, even before the coronavirus turned into a global threat, the International Monetary Fund expected the global economy to grow by 3.3% in 2020. Measures taken by authorities around the world to combat the spread of the virus including restrictions on movement in cities and air flights, forced companies to close and led to a widespread halt in trade. The economy is expected to contract by 7.5% this year In the Eurozone, by 5.9% in the US, by 5.2% in Japan, and by 6.5% in the UK. At the same time, the only country with economic growth this year will be China, the land where firstly coronavirus outbroke. The Chinese economy, as expected by the IMF, will grow by 1.2% in 2020. This is due to the fact that China begins to open earlier than all other countries.