With the outbreak of COVID-19, life has come to a standstill. This huge threat to human life has ushered in multiple crises. According to IMF chief economist Gita Gopinath, the coronavirus pandemic is pushing the global economy into its deepest recession in a century, cutting world output by three percent this year. She presented the latest forecasts in the World Economic Outlook.
“The world has changed dramatically with the outbreak of COVID-19. There is a lot of uncertainty and a lot depends on the epidemiology of the virus, the effectiveness of containment measures and development of therapeutics and vaccines,” she said.
Gita also explains the alternate scenario in extreme conditions that, “given extreme uncertainty around the duration and intensity of the health crisis there are changes that the pandemic may not recede in the second half of this year leading to longer containment period, worsening financial conditions and further breakdown in global chains in such cases global GDP will fall even further by an additional 3% in 2020 and if the health crisis roll cover into 2021 it can reduce the level of global GDP by an additional 8% compared to the baseline.” More »