The International Monetary Fund (IMF)says that the global economic condition has worsened since its last forecast which was three weeks ago. The world will experience more waves of financial market turbulence. Developing nation’s external needs for financing will exceed $2.5 trillion which was previously projected.
The health crisis is not solved and it will get worse. As there is an uncertainty and it is not fading anytime soon. The scarce resources, extraordinary funds and lack of positive results are increasing the burden on economy also.IMF Assumption has been made that the pandemic will be curbed in the second half of the year and that the measures taken will be wound down. The gross domestic product will fell about 3% globally.
With no immediate medical solutions, slowing down economies, not adequate financial benefits. The economic data for many countries is already negative considering the assessment for 2020. Few countries will face solvency crisis and others will need debt- write downs rather than postponement of payments.
IMF sketched out three alternatives scenarios which says the virus would last longer than it is expected to, the GDP globally will fall to 3% if the pandemic is lengthier and for next year the output will be less by 8% than projected for the year.
Thus not in any sector or in any ways the economy is lifting up and the crisis is not going away soon as per WHO the worst is yet to come for the countries which are in their 3rd or 4th stage of the spreading of virus.