The International Monetary Fund believes that due to the coronavirus pandemic, the global economy will decline in 2020 more than previously feared..

Fund Chief Economist Gita Gopinat Announces “Unprecedented Crisis”. According to IMF forecasts released on Wednesday, June 24, the world economy is expected to fall by 4.9 percent, while in April the organization predicted a minus of 3.0 percent, which even then corresponded to the most severe recession since the Great Depression of 1930-.

At the same time, the IMF expects that in 2021 the world economy will grow by 5.4 percent. This is 0.4 points less than according to April forecasts. However, the situation may worsen further in the case of the second wave of coronavirus.

First of all, the fall in GDP will affect countries that are particularly affected by the pandemic. It is estimated that in France, Italy and Spain, the decline will be almost 13 percent, in the UK - 10.2, in the largest economy in the world, the USA - 8 percent.

The forecast for Russia is also worse - the fund believes that the country's GDP will decrease by 6.6%, and not by 5.5%, as expected in April.

At the same time, the IMF praised the actions of the German government: it responded quickly to the crisis, allocating large funds to support the economy. The ruling coalition in Berlin assists businesses with loans, guarantees, and in some cases, such as with Lufthansa, as well as equity. In addition, a stimulus package of EUR 130 billion has recently been drawn up, including a temporary reduction in value added tax..

According to IMF forecasts, German GDP this year will decrease by 7.8 percent. In 2021, growth should reach 5.4%, which is 0.2 percentage points more than previously expected. It is reported by Deutsche Welle.