{"id":271465,"date":"2020-04-14T12:12:30","date_gmt":"2020-04-14T15:12:30","guid":{"rendered":"https:\/\/anba.com.br\/?p=271465"},"modified":"2020-04-14T13:06:42","modified_gmt":"2020-04-14T16:06:42","slug":"imf-sees-global-recession-in-2020-and-a-rebound-in-2021","status":"publish","type":"post","link":"https:\/\/anba.com.br\/en\/imf-sees-global-recession-in-2020-and-a-rebound-in-2021\/","title":{"rendered":"IMF sees global recession in 2020 and a rebound in 2021"},"content":{"rendered":"

S\u00e3o Paulo \u2013 The International Monetary Fund (IMF)\u2019s World Economic Outlook<\/a> report came out this Tuesday (4) with a 3% global economy shrinkage forecast as a result of Covid-19 this year. Gross Domestic Product (GDP) is expected to contract by 2.8% in the Middle East and Central Asia, and 5.3% in Brazil.<\/p>\n

A post-recession rebound is seen happening in 2021 with growth at 5% worldwide, 4% in the Middle East and Central Asia, and 2.9% in Brazil. In the Middle East\u2019s Saudi Arabia, a 2.3% downturn is expected to be followed by 2.9% growth year-on-year in 2021, albeit against an exceptionally weak basis of comparison.<\/p>\n

The IMF points out that \u201cthe world has changed dramatically\u201d since the report was last updated, in January 2020. It labels the pandemic a \u201crare disaster\u201d that has resulted in a tragically large number of deaths, \u201ca crisis like no other\u201d which implies substantial uncertainty about its impact on people\u2019s lives and livelihoods.<\/p>\n

The 3% downturn forecast is a 6.3 percentage point downshift over last January\u2019s estimates. The IMF argues that the ongoing crisis is the worst recession since the Great Depression of the 1930s, and much worse than the 2008 financial crisis. The 5.8% global growth prediction in 2021 assumes that the pandemic will abate in 2020, and that effective policies will be put in place around the globe.<\/p>\n

The IMF warns that recovery in 2021 will be only partial, and that economic activity levels will fall short of earlier projections. It sees global GDP losses of as much as USD 9 trillion in 2020 and 2021 \u2013 more than the size of Japan\u2019s and Germany\u2019s economies combined.<\/p>\n

The Fund notes that \u201cseveral economies entered this crisis in a vulnerable state with sluggish growth and high debt levels.\u201d Developed countries are looking at 6.1% GDP shrinkage this year, before seeing 4.5% growth in 2021. Emerging markets should expect 1% shrinkage in 2020 followed by 6.6% growth next year. If China is taken out of the picture, these markets will see GDP contraction both in 2020 and 2021. Per capita income should go down in more than 170 different countries.<\/p>\n

The IMF believes multilateral cooperation to be vital to ensure that the world doesn\u2019t de-globalize. It said it is deploying its USD 1 trillion lending capacity to support vulnerable countries, including through rapid-disbursing emergency financing and debt service relief to its poorest member countries. \u201cWe face tremendous uncertainty around what comes next,\u201d the report reads.<\/p>\n

Translated by Gabriel Pomerancblum<\/strong><\/p>\n

Veronique Popinet\/Hans Lucas\/AFP<\/div>\n","protected":false},"excerpt":{"rendered":"

The International Monetary Fund predicts 3% contraction of the world economy, with GDP shrinking 5.3% in Brazil and 2.8% in the Middle East. Next year, economies are expected to bounce back, provided that policies prove effective.<\/p>\n","protected":false},"author":2316,"featured_media":271452,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[114],"tags":[14155,26991,14156,1988,5431,14735,14418,14894],"class_list":{"0":"post-271465","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-news","8":"tag-coronavirus-en","9":"tag-coronavirus-en-2","10":"tag-covid-19-en","11":"tag-imf","12":"tag-international-monetary-fund","13":"tag-recessao-mundial","14":"tag-recession","15":"tag-world-economic-outlook"},"wps_subtitle":"The International Monetary Fund predicts 3% contraction of the world economy, with GDP shrinking 5.3% in Brazil and 2.8% in the Middle East. Next year, economies are expected to bounce back, provided that policies prove effective.","_links":{"self":[{"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/posts\/271465","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/users\/2316"}],"replies":[{"embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/comments?post=271465"}],"version-history":[{"count":0,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/posts\/271465\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/media\/271452"}],"wp:attachment":[{"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/media?parent=271465"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/categories?post=271465"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/tags?post=271465"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}