The International Monetary Fund (IMF) has presented a very serious picture of the Global Economy. IMF chief economist Gita Gopinath says the decline in the global economy due to the Coronavirus epidemic is frightening. she says the recovery outlook remains uncertain. The IMF had forecast a 3 percent decline in the global economy in April, but Gopinath has said that the new estimate on June 24 could be much worse.
There Is Uncertainty about Recovery
Speaking at the seventh virtual meeting of the Asian Monetary Policy Forum, Geeta Gopinath said that there is intense uncertainty about recovery. she said sectors like transportation have suffered extensive losses due to Coronavirus. At the same time, it has increased the risk of Bankruptcy and Job loss. Apart from this, there has also been a change in consumer behavior. He said that today everyone is concerned about recovery.
If the Corona Stays for a Long Time Then There Will Be Worse Conditions.
The IMF released the World Economic Outlook in April. It said that if the corona epidemic continues for a long time, the economic situation may become worse. Last week, the World Bank forecast a 5.2 percent decline in the Global Economy. The World Bank had said that on the economic front it is the worst situation in 150 years.
The Rate of Decline in Global GDP Is Estimated to Be 2.3% in May.
Governments around the world have taken several steps to compensate for the damage done to the economy due to Coronavirus. Its results are also coming to the fore. The global GDP fell by 4.8 percent in April due to the lockdown, but it is expected to improve in May. The GDP growth rate is expected to decline by 2.3 percent in May. That is, the rate of decline in world GDP will behalf.