Bengaluru: The International Monetary Fund has predicted that the world economy could shrink by 3%, all thanks to the coronavirus which has led to a depression in economic activities. The IMF added that it marks the steepest downturn since the Great Depression of the 1930s.
The IMF, in its 2020 World Economic Outlook, predicted a partial rebound in 2021, with the world economy growing at a 5.8 per cent rate, but said its forecasts were marked by "extreme uncertainty" and that outcomes could be far worse, depending on the course of the pandemic.
"This recovery in 2021 is only partial as the level of economic activity is projected to remain below the level we had projected for 2021, before the virus hit," Gita Gopinath, the IMF’s chief economist said.
Under the Fund’s best-case scenario, the world is likely to lose a cumulative $9 trillion in output over two years - greater than the combined gross domestic product of Germany and Japan, she added.
It is also important to note that a UN report had predicted that the world economy would shrink by 1% I 2020. It had also added that it would worsen if embargoes on economic activities would continue.
Lockdowns in several parts of the world have contributed a lot to the shrinking of economy. The service sector has been hit hard as also recreation and transportation.
India too is suffering badly due to the lockdown imposed. But in the present conditions, PM Modi has summoned his courage in order to impose the lockdown.
The lockdown in the country will go on till May 3 which is nothing but an extension to the first one.
The government has also kickstarted economy revival by kickstarting farming, agriculture and fisheries.
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