The IMF intends to reduce economic forecasts and warns of a crisis unparalleled in the world

by **claud39** on Wed Jun 17, 2020 12:59 pm

The IMF intends to reduce economic forecasts and warns of a crisis unparalleled in the world

17/06/2020

Economy News _ Baghdad

The International Monetary Fund's chief economist, Geeta Gopinath, has warned that developed and emerging economies alike will experience a recession in 2020 for the first time since the Great Depression.

According to a report published by the Fund’s blog, the world economy may face a recession crisis that is the worst ever, despite some people taking steps to reopen, with reference to a wave of correction in financial markets if things get worse.

Gopinath added that the upcoming Global Economic Prospects report for June is likely to show a further contraction in global GDP at a worse rate than previously announced.

She stated that the current crisis, which she described as a "major closure", was unlikely to resemble anything the world had seen before.

This crisis would have severe consequences for the world's poor, according to the report.

The "Covid-19" epidemic started as an emergency health crisis, but later turned into an economic crisis because of the required social divergence measures and travel restrictions measures.

And the World Economic Outlook for April showed that gross domestic product may contract by about 3% this year at the biggest decline since the Great Depression of the 1930s.

According to data from "Johns Hopkins University", there are more than 8 million people infected with the virus around the world, with the United States, Brazil and Russia at the forefront of countries with the largest number of people infected with the epidemic.

The IMF report indicated that this crisis dealt a particularly big blow to the services industry and more than the industrial sector, which reflects the decline in investment, which is considered a change from the previous crises.

Accordingly, Gopinath says: "It is possible that with pent-up consumer demand, there will be a faster recovery, unlike in previous crises."

But she also warned that this was not taken for granted. Because the health crisis may change consumer spending.

At the same time, she stated that despite traditional and unconventional monetary and financial support around the world, overall demand remains weak and puts downward pressure on inflation as well as lower commodity prices.

On the other hand, you see that there is a big difference in the financial markets from the real economy, where financial indicators indicate stronger recovery possibilities than the real activity suggests.

She stressed that if there is a further deterioration in health or economic conditions, there may be sharp corrections in public markets.

http://economy-news.net/content.php?id=20742

by **claud39** on Wed Jun 17, 2020 1:02 pm

The IMF warns of an unprecedented global economic crisis

June 16, 2020

The IMF intends to reduce economic forecasts and warns of a crisis unparalleled in the world 1024

The IMF intends to reduce economic forecasts and warns of a crisis unparalleled in the world 1024

Mubasher - Sally Ismail: The International Monetary Fund warned that the global economy may face a recession crisis that is the worst ever, despite some people taking steps to reopen, with reference to a wave of correction in financial markets if things get worse.

"The developed and emerging economies alike will experience a recession in 2020 for the first time since the Great Depression," the chief economist of the International Monetary Fund, "Geta Gopinath", explains in a report published by the International Monetary Fund blog, on Tuesday.

And she adds that the upcoming Global Economic Prospects report for June is likely to show a further contraction in global gross domestic product than worse than previously announced.

She stated that the current crisis, which she described as a " major closure ", was unlikely to resemble anything the world had seen before.

This crisis would have severe consequences for the world's poor, according to the report.

The "Covid-19" epidemic started as an emergency health crisis, but later turned into an economic crisis because of the required social divergence measures and travel restrictions measures.

And the World Economic Outlook for April showed that gross domestic product may contract by about 3 percent this year at the biggest decline since the Great Depression of the 1930s .

According to data from "Johns Hopkins University", there are more than 8 million people infected with the virus around the world, with the United States, Brazil and Russia at the forefront of countries with the largest number of people infected with the epidemic.

The IMF report indicated that this crisis dealt a particularly big blow to the services industry and more than the industrial sector, which reflects the decline in investment, which is considered a change from the previous crises.

Accordingly, Gopinath says: "It is possible that with pent-up consumer demand, there will be a faster recovery, unlike in previous crises."

But she also warned that this was not taken for granted. Because the health crisis may change consumer spending.

At the same time, she stated that despite traditional and unconventional monetary and financial support around the world, overall demand remains weak and puts downward pressure on inflation as well as lower commodity prices.

On the other hand, you see that there is a big difference in the financial markets from the real economy, where financial indicators indicate stronger recovery possibilities than the real activity suggests.

She stressed that if there is a further deterioration in health or economic conditions, there may be sharp corrections in public markets.

https://www.mubasher.info/news/3654973/%D8%B5%D9%86%D8%AF%D9%88%D9%82-%D8%A7%D9%84%D9%86%D9%82%D8%AF-%D9%8A%D8%AD%D8%B0%D8%B1-%D9%85%D9%86-%D8%A3%D8%B2%D9%85%D8%A9-%D8%A7%D9%82%D8%AA%D8%B5%D8%A7%D8%AF%D9%8A%D8%A9-%D8%B9%D8%A7%D9%84%D9%85%D9%8A%D8%A9-%D8%BA%D9%8A%D8%B1-%D9%85%D8%B3%D8%A8%D9%88%D9%82%D8%A9/