According to the latest from the IMF’s World Economic Outlook , the coronavirus pandemic will bring about the worst economic downturn since the Great Depression.
That is its optimistic outlook.
The Fund admitted that damage could be far worse than its projections and that while there’s some chance they could be positively surprised, “downside risks prevail.”
The organization’s baseline expectation is for a recession “far worse” than the 2008 financial crisis, with global GDP contracting by 3% this year. That’s a drastic downgrade from its forecast of 6.3% growth in January, and 30 times worse than the economic decline in 2008.
Global GDP is expected to face a cumulative loss of about $9 trillion — larger than the economies of Japan and Germany combined.