The World Economic Outlook, April,2020 painted a gloomy picture of the world economy. The noval coronavirus is making life even more tougher.
By Nirmal Jyoti Kapil
The novel coronavirus is not only a global health crisis anymore. It is causing a global financial crisis of unprecedented magnitude. Releasing the World Economic Outlook-April’2020 today, Gita Gopinath, Chief Economist, International Monetary Fund, cautioned,” We face tremendous uncertainty around what comes next”.
Ever since, the world has been put in a “Great Lockdown” to break the chain of infection of novel coronavirus, with in a very short span of time the economic activity across the globe had collapsed to a great magnitude. Presenting the World Economic Outlook on the backdrop of this Great Lockdown, Gita Gopinath opined,” There is substantial uncertainty about its impact on lives and livelihoods”.
Alerting that more severe days are coming, Chief Economist, Gita Gopinath declared that the Great Lockdown is the worst recession since the Great Depression of 1929-33 and far worse then the Global Financial Crisis of 2007-08. ” For the first time since the Great Depression both advanced economies and emerging market and developing economies are in recession”, she informed.
9 trillion dollars global GDP loss
According to the World Economic Outlook released today, the global growth will fall to -3 percent in 2020. This is a downgrade of 6.3 percentage points from January’2020. Terming this as a major revision over a very short period, Gita Gopinath warned of a worst recession since the Great Depression.
Estimating the cumulative loss to global GDP over 2020 and 2021 could be around 9 trillion dollars, greater then the economies of Japan and Germany combined, Gita Gopinath also brought to the attention that income per capita is projected to shrink for over 170 countries.
In this crucial hour, the IMF Chief Economist urged the policy makers of the world to be more proactive. Reiterating that the improvement of health sectors must be taken on priority basis, she emphasised that simultaneous efforts must also be there from policymakers to safeguard the economy. From protecting the interest of daily wage earners and small and medium enterprises to decisions on more complicated financial parameters, the policymakers of the world must show resilience. ” The courageous actions of doctors and nurses need to be matched by policymakers all over the world so we can jointly overcome this crisis”, a powerful statement by the IMF Chief Economist intended towards the world political leadership.