The International Monetary Fund says the economic damage done by shutting down the world’s economy and placing half the world’s population under some form of lockdown will be the worst since the Great Depression 90 years ago.
The IMF calculates that $100 billion has been withdrawn from global investment to date during the current crisis, three times more than during the Great Recession of 2008. This loss of investment will turn projected growth into net economic contraction and reduce household incomes in the aggregate for 170 countries this year, the fund projects.
The IMF is slower than many government officials in its prediction about restarting the global economy.
It sees lockdowns lifted during the second half of this year and a partial economy recovery in 2021. Kristalina Georgieva, the IMF’s managing director, warned against lifting lockdown orders too soon, saying defeating the virus and protecting public health are necessary for economic recovery.
