What will happen after this corona-crisis?
1 Answer
Covid-19 has already generated a sharp fall in global GDP and a rapid rise in unemployment, but what kind of recovery can we expect once the crisis passes? With the world economy already experiencing a sharp fall in GDP and rapid rises in unemployment, forecasters have been struggling to work out how big it will be and how long it will last. In this article we have analysed prospects for economic recovery due to COVID-19 Outbreak Outbreak. Projections reported by Gita Gopinath, the IMF Chief Economist, suggest the world economy will shrink by 3 percent in 2020, instead of 3.3 percent growth forecast just three months ago. Assuming an early peak in the incidence of the virus (and that the countervailing policies are successful), it will recover strongly in 2021 to achieve growth of 5.8 percent.