IMF Says Great Lockdown Recession Likely Worst Since Depression
“The International Monetary Fund predicted the “Great Lockdown” recession would be the steepest in almost a century and warned the world economy’s contraction and recovery would be worse than anticipated if the coronavirus lingers or returns.In its first World Economic Outlook report since the spread of the coronavirus and subsequent freezing of major economies, the IMF estimated on Tuesday that global gross domestic product will shrink 3% this year. That compares to a January projection of 3.3% expansion and would likely mark the deepest dive since the Great Depression. It would also dwarf the 0.1% contraction of 2009 amid the financial crisis.”
Europe Is Planning How to Get Back to Work After Virus Is Tamed
“Europe’s leaders are sketching out their strategy for putting the economy back to work amid warnings that lifting emergency measures will probably lead to an upsurge in coronavirus infections. Austria and Denmark are beginning to open up some schools and shops this week and President Emmanuel Macron on Monday night told the French that he wants to ease restrictions from May 11. Chancellor Angela Merkel is due to discuss her plans with German state premiers on Wednesday, while the European Commission has drafted a plan to coordinate strategies.”
World Watches China’s Economy for Signs of Life After Lockdown
“With the coronavirus outbreak in China seemingly under control, everyone is watching the world’s second-largest economy for signs of life after lockdown. Companies are getting back to work, more and more people are out shopping, there was a record expansion in bank lending in March, and exports and imports weren’t as bad as expected, according to data on Tuesday. However, it’s too early to uncork the champagne yet, with data due Friday expected to show that the economy had a historic contraction in the first quarter.”
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