In 2020, the world economy will experience its worst recession since the Great Depression, surpassing that seen during the global financial crisis a decade ago, Gita Gopinath, the International Monetary Fund’s (IMF) chief economist, said in the latest World Economic Outlook report.
According to the IMF, the global economy is expected to contract by three per cent in 2020.
“It is very likely that this year the global economy will experience its worst recession since the Great Depression, surpassing that seen during the global financial crisis a decade ago,” Gita Gopinath said.
In addition, around 170 countries will face narrowing in their gross domestic product (GDP) this year due to the novel coronavirus’ impact on the economy, IMF highlighted.
The Washington based organisation’s Managing Director, Kristalina Georgieva said the pandemic is a “crisis like no other,” noting that the global crisis, which caused successive effects on health and economy, is more complex and uncertain, Bloomberg reported.
“Only months ago we were projecting 160 economies to register positive per capita income growth,” Georgieva said.
After originating in Wuhan, China, last December, COVID-19 has spread to at least 185 countries and regions worldwide, with Europe and the US the worst-hit regions.
Today, according to data compiled by US-based Johns Hopkins University, there are more than 2.73 million cases worldwide and nearly 191,614 deaths. Over 750,000 have recovered from the virus.