World Economy May Lose $9 Trillion - Timespro News

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Tuesday, April 21, 2020

World Economy May Lose $9 Trillion


$9 Trillion Economy Could Lose World
$9 Trillion Economy Could Lose World 

These are unprecedented times for the global economy and that's an understatement. The pandemic has set back the world economy by decade’s while alarm bells are ringing at the IMF and World Bank. Pressure is mounting on these organizations to help the poor countries; advanced economies are the worst-hit

How is the world coping?

 In these times even the grimmest economic forecasts show a sense of optimism. It’s hard not to try and find hope in circumstances not seen since the Great Depression. Today the world is staring at an economic collapse possibly the worst in nearly a hundred years. The corona virus pandemic has undone decades of economic development, threatening to push more people into poverty.

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How things changed in three months?

In January the International Monetary Fund said that the world economy would grow by about 3% in 2020 and now the world economy is drained forget growth says IMF.The global economy will contract by 3% this year. Let’s begin the survey of the global economic damage with the global South.
Corona virus is sure to end Asia’s 60-year growth streak according to the IMF that means zero growth in 2020.This is much worse than the global financial crisis of 2008, that year Asia grew at 4.7% take the region's worst financial crisis which is the Asian currency crisis in the 1990s. Even then Asia grew at slightly more than 1%.Moving to Latin America the IMF predicts the worst recession in half a century, one out of three people could lose their jobs in South America and that is 200 million people unemployed on a single continent.
In Africa nearly half the jobs could be lost without urgent action in the global north the advanced economies are the worst-hit.
The IMF sees them shrinking by at least six percent this year that's negative growth rate.The United Kingdom’s GDP could contract by thirty five percent this quarter. A truly global recession is rare.It's now both advanced and emerging economies are in deep trouble at the same time. The total output loss could be around 9 trillion dollars



Who will pay?
So far the IMF has mobilized nearly 8 trillion dollars but there is a shortage of public finances especially in poorer countries.Nearly two more trillion dollars are required to support developing economies, the IMF has also received over 11 billion dollars has pledged from five countries Japan, United Kingdom France, Canada and Australia have contributed.The G20countries have suspended debt repayments, this will free up at least 20 billion dollars in poorer countries for fighting the pandemic.Now China has urged the World Bank to do the same therefore, a loan payment perhaps China should lead by example.

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