Consequences of coronavirus crisis may worsen — IMF

The International Monetary Fund hopes for a progressive recovery in the world economy.

The global economy may be more significantly affected by the crisis caused by the coronavirus pandemic than previously predicted. This was announced on Tuesday, October 13, in the report of the IMF’s chief economist Gita Gopinath, released at the Fund’s videoconference.

“This time we are faced with real, large-scale shocks, a pandemic, a health crisis.<…> This pandemic is not over yet, which means that its consequences could be even worse,” she said.

According to Gopinath, the coronavirus has blocked the global service industry and consumer demand, hampering investment. At the same time, many things are negatively affected by “colossal uncertainty.”

At the same time, the IMF hopes that if significant progress is made in the health sector, the world economy will begin a progressive recovery. However, according to the latest forecasts of the Fund, in most countries, GDP growth rates will only return to the indicators that were recorded before the pandemic by 2022.

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