IMF estmates growth in the world economy to be -4.4 percent due to COVID-19

Due to the rapid spread of COVID-19 pandemic, the International Monetary Fund(IMF) had earlier forecast the growth in the world economy to be -5.2 percent, however, in its latest report it has revised its forecast to -4.4 percent growth and has expected less severe recession then it predicted earlier.

According to Gita Gopinath, Chief Economist, IMF, the economies have been saved from plunging into deeper recession due to unprecedented regulatory, monetary and fiscal responses to the crisis created by the pandemic.

However, she has warned at the same time that the unemployment scenario shall remain worrisome and that the youth, low-income workers, and the women have been hardest hit due to the pandemic.