The International Monetary Fund (IMF) has published a new report on the world economy. According to the IMF estimates, the coronavirus will hit a heavy blow to the world economy and the economy will shrink by 3%. Thus, the IMF expects to experience the “worst contraction since the Great Depression”.
Shrinkage in the Economy
According to IMF estimates, the Coronavirus will affect the world economy worse than the 2008 financial crisis. During this period, the economy is expected to shrink by 3%.
According to IMF forecasts 5.9% in the US, 7% in Germany, 6.5% in the United Kingdom, 7.2% in France, 9.1% in Italy, 8% in Spain, 5.2% in Japan, Turkey ‘ It is expected to shrink by 5%.
International Monetary Fund economist Gita Gopinath said in a comment on this picture that we will experience the worst recession ever seen since the Great Depression this year.
Expectations in 2021
According to the estimations of the IMF, the world economy will show a remarkable growth of 5.8% in 2021. During this period, the economy is expected to partially return to normal and economic activities will increase again.
The IMF envisages Turkey’s economy will shrink by 5% this year, expecting the economy to grow by 5% next year. In addition, according to the IMF estimates, the unemployment rate, which was 13.7% in 2019, will increase to 17.2% in 2020 and will decrease to 15.6% in 2021.