IMF: ‘Less severe’ but ‘still deep’ recession predicted

Asha Bajaj
3 min readOct 13, 2020

#IMF; #DeepRecessionPredicted; #GDP; #Covid19Pandemic

In the shadow of the COVID-19 pandemic and its continuing impact, the global economy could see a “somewhat less severe, though still deep” recession through 2020, the International Monetary Fund (IMF) has projected in its latest global economic outlook.

Mariana Ceratti/World Bank

The revision is driven by better-than-anticipated second-quarter gross domestic product (GDP) in large advanced economies, the IMF reported on Monday, noting also stronger than expected growth in China and signs of a more rapid recovery in the third quarter.

Collectively these actions have so far prevented a recurrence of the financial catastrophe of 2008–09 — Gita Gopinath, IMF

Out-turns would have been much weaker if it weren’t for sizable, swift, and unprecedented fiscal, monetary, and regulatory responses that maintained disposable income for households, protected cash flow for firms, and supported credit provision”, Gita Gopinath, Economic Counsellor and Director of Research at IMF, said in a foreword to the report.

“Collectively these actions have so far prevented a recurrence of the financial catastrophe of 2008–09”, she added.

Global growth forecast at -4.4%

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Asha Bajaj

I write on national and international Health, Politics, Business, Education, Environment, Biodiversity, Science, First Nations, Humanitarian, gender, women