The global coronavirus pandemic has sparked an economic “crisis like no other,” the International Monetary Fund warned Wednesday, predicting that world GDP would plunge by 4.9 percent and Argentina’s own economy by 9.9 percent.
The IMF said the virus crisis would wipe out US$12 trillion over two years, with Latin America’s economies set to be some of the hardest hit, with Brazil’s economy now expected to shrink 9.1 percent and Mexico’s by 10.5 percent. For 2021, the Fund sees global growth of 5.4 percent, down from 5.8 percent.
Having already warned of the biggest slump since the Great Depression, the IMF said its increased pessimism reflected scarring from a larger-than-anticipated supply shock during the earlier lockdown, in addition to the continued hit to demand from social distancing and other safety measures. For nations struggling to control the virus spread, a longer lockdown also will take a toll on growth, the IMF said.
Latin America has been one of the world’s worst hotspots for weeks, and the number of deaths in Latin America and the Caribbean surpassed 100,000 on Wednesday. Brazil was the hardest-hit country, with its new cases surpassing even the United States – over 42,700 recorded Wednesday.
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