Friday, June 26, 2020

The contraction of the world economy will be worse than feared


The International Monetary Fund (IMF) on Wednesday outlined a fading outline of the global economy, saying the real damage would be far greater and more severe than predicted by the global economy due to the epidemic. Then the economy will gradually return to normal.

After reviewing Corona's financial losses, the International Monetary Fund (IMF) forecast in April that the world economy would shrink by 3 percent this year. However, the company said in a statement on Wednesday that the global economy would shrink by 4.9 percent this year.

The IMF says no major economy in the world will survive the epidemic. The United States, the world's largest economy, will also shrink by 6 percent this year. In addition, countries that only use the euro will shrink by more than 10 percent. And Japan's production will be 5.6 percent less.

China's economy is not only plagued by an epidemic, but also by a trade war with the United States. It is said that this time China's growth will be only 1 percent. China, the world's second-largest economy, has never had such a slowdown in growth in decades. Which will have an impact on the whole world economy.

The IMF's latest forecast is much more alarming than it was two months ago, as economic activity is plummeting. Assessing its financial performance in mid-April, the IAMF said in its forecast that the situation could be even worse.

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