Covid-19: IMF predicts global economy could shrink by 3% in 2020

Covid-19: IMF predicts global economy could shrink by 3% in 2020

- The IMF has projected a possible 3% shrink in the global economy as the coronavirus continues to spread globally

- It has also cautioned there are extreme uncertainties tied to its 5.8% growth projection in the world's economy

- It indicated that there is a possible cumulative loss of $9 trillion in output over two years, which is greater than the combined GDP of Germany and Japan

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The International Monetary Fund (IMF) has predicted a likely shrink in the global economy by 3%.

According to the IMF, the collapse of economic activities would mark the steepest downturn since the Great Depression of the 1930s.

In its 2020 World Economic Outlook, the IMF predicted a partial rebound in 2021 with the world economy growing at 5.8%.

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As per a Reuters report, it, however, stated that there are extreme uncertainties tied to the forecasts.

This, it went on, could lead to far worse outcomes depending on the course of the outbreak.

The IMF has projected that there is likely to be a cumulative $9 trillion loss in output over two years, which is greater than the combined Gross Domestic Product (GDP) of Germany and Japan.

It further predicted that the coronavirus could reach its peak in several countries during the second quarter of 2020 and fall in the second half of the year.

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Meanwhile, Donald Trump accused the WHO of contributing to the rapid spread of the virus and also playing a cover-up role, thus complicating the fight against the global pandemic.

Trump has frozen the US's funding of the WHO until his team has conducted an investigation into how the coronavirus pandemic was handled.

Trump further blamed the WHO for being what it terms as 'Chinacentric' despite the US contributing around $500 million annually while China contributes around $40 million to the agency.

"I am instructing my administration to halt funding of the WHO while a review is conducted to assess its role in severely mismanaging and covering up the spread of the coronavirus.
"American taxpayers provide between 400 million and 500 million dollars per year to WHO and in contrast, China contributes roughly 40 million dollars a year and even less. As the organisation's leading sponsor, the United States has a duty to insist on full accountability,"

Trump said. According to Trump, the WHO was opposed to initial strategies he had laid to help ward off the disease that broke out in China in December 2019.

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