Global Economy May Not Fully Recover from the coronavirus Crisis by 2021, IMF Chief Economist Says.


Coronavirus is a disease that has made the whole world suffer emotionally, physically, economically, and socially. The World Health Organization is trying to work with other big medical firms and prominent people to come up with a vaccine as soon as possible.

There have also been political and fraud issues concerning the pandemic. For example, people want the Director-General for WHO to resign since he appears quite ‘unfit’ for the task of killing this disease.

Globally, the cases of coronavirus are over 2 million, with the United States having the most cases worldwide. The number of deaths is still increasing, and the death toll reads at 148634, and the number of recoveries as of today were 558168.

The United States has 678210 cases of coronavirus, 34641 fatalities, and 57844 recoveries. In Spain, the number of cases is 184948, the death toll is at 19315, and it has over 70000 improvements. Italy’s numbers are quite going slow, having only 168941 cases, over 20000 fatalities, and 40164 recoveries.

Coronavirus and the Global Economy.

Since the number of cases has been rising, the coronavirus pandemic has damaged the economic sector badly. First of all, following the international guideline of social distancing, the pandemic caused a lot of schools and businesses to be dormant.

Many employed workers have lost their jobs amid the virus, as many more people work from their houses. On the other hand, the stock market indexes are not doing as good as they were initially before this whole disaster began.

A time before the OPEC and OPEC+ leaders did agree on the oil production cut, the prices and demand for oil were declining.

Following the closure of countries’ borders, the volume of trade is very low. This has resulted in a decline in demand for people as the volumes of imports and exports are going down. Businesses such as horticulture, which depend on trading are experiencing much more challenges since the closure of borders act as barriers to trade.

Last but not least, the agricultural output is low, considering food imports declination of 25%-13% because of low demand. Also, the health systems of many countries are in challenges due to hospitalizing many patients hence causing congestion of facilities.

Measures Put To Counter The Economic Effects Of Coronavirus.

Despite the economic hardships as a result of coronavirus, different parties have played roles to mitigate them. The government and central banks of various countries are employing fiscal and monetary policies to lessen the effects.

In the United States, the government has signed a stimulus coronavirus check to help different individuals during this hard time. These parties are responding aggressively and rapidly to contain the disease before it spreads further, causing more damage.

Senior Economists’ Predictions On The Global Economy.

Despite the economic activities coming to a halt, some economists say that the global economy may improve come 2021. According to Gita Gopinath, she says the world economic activities may not heal fully by late next year.

She predicts that the economy will decline by 3% this year before improving 5.8% in 2021. Though she says this is just a part of the healing. 

She says, “We have a recovery projected for next year of 5.8% improvement, but that is a partial recovery. So even by the end of next year, we are expecting the level of economic activity to be under what we had predicted before the pandemic.”



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