IMF forecasts that COVID-19 recession will be much worse in high income countries; global economy to contract sharply by -3% in 2020

The COVID-19 pandemic is inflicting high and rising human costs worldwide, and the necessary protection measures are severely impacting economic activity. As a result of the pandemic, the global economy is projected to contract sharply by –3 percent in 2020, much worse than during the 2008–09 financial crisis.

In a baseline scenario--which assumes that the pandemic fades in the second half of 2020 and containment efforts can be gradually unwound—the global economy is projected to grow by 5.8 percent in 2021 as economic activity normalizes, helped by policy support.

IMF forecasts that COVID-19 recession will be much worse in high income ("Advanced") countries than in low and middle income ("Emerging and Developing") countries.

Source: imf.org