The world economy is virtually on hold due to the coronavirus pandemic, with COVID-19 cases documented in at least 185 countries across the globe, and shelter-in-place orders crippling economies from the U.S. to Italy and beyond.
Now, in a report released by the International Monetary Fund (IMF), it's likely that the worst recession since the 1930s is on the horizon.
“It is very likely that this year the global economy will experience its worst recession since the Great Depression, surpassing that seen during the global financial crisis a decade ago,” said IMF Economic Counsellor Gita Gopinath, in the latest World Economic Outlook report.
"This crisis is like no other," she added.
The U.S economy is projected to contract by 5.9 percent.
However, the report says that if the pandemic fades in the second half of 2020 and if policy actions taken around the world are effective, the global economic growth will rebound to 5.8 percent next year.
The swift and substantial economic policy actions taken in many countries will help shield people and firms, preventing even more severe economic pain and create the conditions for the recovery," said Gopinath.
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