JAKARTA - The International Monetary Fund (IMF), revealed that the COVID-19 pandemic has brought the world to an economic crisis, even worse than the 1930 Great Depression or the 2008 financial crisis.
The 1930 crisis occurred between the First and Second World War, which began with the fall of Wall Street in late 1929. The crisis dragged the economy of industrial and developing countries into ruins. The depression began to subside during World War II.
Today, due to the COVID-19 outbreak, economists see that the conditions are far worse than the 1930s. Through its official website on Tuesday (14/4), the IMF also issued a warning that the recession could continue to 2021 if policymakers failed to coordinate to face the coronavirus. "Even the recession could be far worse than the 2008 financial crisis," the agency wrote.
The IMF estimates that GDP will decline by 3% this year on average. Lockdown implemented in many countries is projected to dramatically shrink global growth. "There will be a partial recovery in 2021. However, the level of GDP will remain below the trend before the presence of the coronavirus," the IMF said. (ARM/AR)