The pandemic sweeping the world will turn global economic growth 'sharply negative' in 2020, triggering the worst fallout since the 1930s Great Depression, with only a partial recovery seen in 2021, the head of the International Monetary Fund said.
WASHINGTON - The pandemic sweeping the world will turn global economic growth “sharply negative” in 2020, triggering the worst fallout since the 1930s Great Depression, with only a partial recovery seen in 2021, the head of the International Monetary Fund said.
“Just three months ago, we expected positive per capita income growth in over 160 of our member countries in 2020,” she said on Thursday in remarks prepared for delivery ahead of next week’s IMF and World Bank Spring Meetings. The IMF, which has 189 member countries, will release its detailed World Economic Outlook forecasts on Tuesday.
With commodity prices down sharply, emerging market and developing countries would need trillions of dollars to fight the pandemic and rescue their economies, she said. Coordinated fiscal stimulus was critical, and monetary policy should remain accommodative, where inflation remained low.
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