The International Monetary Fund reduced its forecast for the global output in 2020, indicating that the damage caused by the Coronavirus pandemic to the economic activity is broader and deeper than any previous forecast.
The IMF predicted a contraction of global output of 4.9 percent, compared to 3 percent in last April's forecast, and the expected recovery in 2021 will be weaker, as global growth is expected to reach 5.4 percent, not 5.8 percent, as estimated in April. According to the fund, a new outbreak of the "Coronavirus" in 2021 could reduce growth to no more than 0.5 percent.
These bad expectations extend to all regions of the world, and this crisis, according to "IMF", will lead to a cumulative loss of 12 trillion dollars in the world economy over two years. The IMF urged more measures from governments and central banks to support jobs and companies to reduce damage and pave the way for an economic recovery.
The fund revealed that the unique features of social closures and divergences have combined to obtain investment and consumption alike.
Source (Al-Sharq Al-Awsat Newspaper, Edited)