COVID-19 is Hitting the world’s Economy hard, the International Monetary Fund (IMF)

The International Monetary Fund (IMF) cautioned that the global pandemic is likely to trigger an alarming slide to extreme poverty and inequality, leading to over 90 million people dropping below $1.90 dollars in daily income worldwide.

The IMF has published the World Economic Outlook, its flagship annual report, which sees growth recovery from the effects of COVID-19 as a “long and difficult rise.” The pandemic forced the IMF to practically hold its biannual meeting of central bank governors and finance ministers starting this week. The IMF sees global economic growth shrink to negative 4.4pc in 2020, while its analysts are positive at 5.2pc for next year’s recovery.

In its outlook, the IMF said, “The continued production losses indicate a significant setback to living standards compared to what was predicted before the pandemic.” “The incidence of extreme poverty would not only rise for the first time in over two decades, but inequality is likely to increase because women, informally working people and those with comparatively lower educational attainment have been disproportionately affected by the crisis.”

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