IMF predicts the worst global economic downturn
The International Monetary Fund (IMF) issued the new forecast on the economic development of countries, including Kazakhstan. However, the published outlook for the global economy is rather pessimistic. The IMF said that the world’s economy will suffer its worst year since the Great Depression of the 1930s due to the coronavirus pandemic.
While the world leaders are fighting against the novel coronavirus, the world economy is in decline. According to the IMF, this year’s global economy will shrink by 3 percent due to the quarantine measures introduced in the most countries. The Fund said that Europe will be affected the most. The IMF expects economic contractions of 7.5 percent in Euro Area this year. The Fund forecasted that the oil producing countries, including Kazakhstan, will have hard times amid the global pandemic.
“The world has been put in a great lockdown. Oil-producing countries, including Kazakhstan, will experience a difficult situation. Kazakhstan’s economy is affected by the strong quarantine measures and the recent crash in crude prices. According to the IMF forecasts, the economy of this country will shed by 2.5 percent in 2020,” said IMF’s chief economist Gita Gopinath.
The IMF also published its forecast for oil prices. Having decreased as much as possible in March, the price of crude oil will no longer decline in the near future, the Fund said.