The global economy will this year likely suffer the worst financial crisis since the Great Depression, the International Monetary Fund said.
To contain the spread of the virus, many governments have implemented lockdown measures, only allowing people to leave their houses to purchase groceries, medicines and, in some cases, to exercise. As a result, business activity has stalled in many countries.
There's severe uncertainty about the duration and intensity of the economic shock, it added, and stimulating economic activity is more challenging given the required social distancing and isolation policies. The fund, which provides financing to members which are struggling economically, has $1 trillion in lending capacity.The latest forecasts from the IMF suggest that the U.S. economy will contract by 5.9% this year. In comparison, the euro zone is expected to shrink by 7.5%, but China is seen growing by 1.2% in 2020.
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