In an interview on Tuesday, the 14th of April, the IMF revealed that they are expecting one of the severe recession due to global pandemic shortly, and they also advised to gear up.
How will COVID-19 affect the economy?
According to a recent report, the International Monetary Fund has predicted that the global economy would shrink by approximately 3 percent in 2020, and it will rebound again in 2021.
The virus will affect the United States very much as it is the home of Wall Street. The economic contraction is expected to be almost twice in the US. The IMF predicts that the US will recover partially in 2021.
The IMF stated that protecting lives and inducing lockdown in several countries across the world to slow the spread of Coronavirus has resulted in a severe recession in the economy worldwide.
Even economists are facing a tough time in making moves as no one knows when the spread of the virus will recede. They are planning to make this better by containing the damage it has caused on the economy and the market. The public officials in the United States have advised the government to reopen the critical shuttered parts of the economy and restart it partially.
The International Monetary Fund added that the lockdown and other necessary steps taken were crucial in saving lives and protecting the human race; the recession in the economic activity could not be avoided.
To reduce the hit on the economy, policymakers should begin taking initiatives. The US Congress has allowed the grant and relief payments to both businesses and individuals, and even the Federal Reserve has made promises to provide a financial lifeline with trillions of dollars in emergency lending.
Finally, the International Monetary Fund has requested all of the countries to cooperate as this step is essential to flatten the economy recession curve.
