The Global Economy is forecasted to shrink by 3 percent in this financial year. The Global Economy is suffering due to an outbreak of coronavirus pandemic. As per economists and analysts from the International Monetary Fund (IMF), it is the worst setback since 1930’s depression i.e., The Great Depression.
The United States is currently the epicenter of coronavirus pandemic. It was first detected in Wuhan, China, last year. Till now, more than 180 countries are suffering from Coronavirus.
The global economy can bounce back only in two cases. Either coronavirus patients diminished in the second half of this year, or scientists find a vaccination for viruses. IMF slashed growth by 6.3 percent and projects next year’s increase by 5.8 percent.
Moreover, the Japanese economy will shrink by more than 5 percent. It is the worst downfall since the collapse of Lehman Brothers, 2009.
The IMF told immediate priority is to stop widespread of Coronavirus. Moreover, the aim is to prevent the economy from going into a situation like 1930’s depression.
Due to the fear of diffusion of Coronavirus, all countries forced to shut down. All the businesses, events, travel, factories, etc. are under lockdown. Until now, more than 1.9 million people are Coronavirus positive. Furthermore, the death toll crossed 120,000 as per data by Johns Hopkins University. During the 1930s, depression global economy contracted by 10 percent. However, in 2008, the financial crisis global economy shrinks 0.1 percent. However, still, the risk of the worst outcome is under prediction. The current pandemic situation could be worse than the great economic depression of 1930.