The economic blow caused by the coronavirus will be “far worse” than the GFC according to a dire outlook from the International Monetary Fund.
If the pandemic fades in the second half of 2020 and government responses are effective, global growth is expected to rebound to 5.8 per cent in 2021, Ms Gopinath said.
Most forecasts say the impacts of the pandemic will be temporary but a NAB report released this week details how long the jobless rate typically takes to recover from a widespread downturn. The coronavirus pandemic is pushing the global economy into its deepest recession in a century, according to the International Monetary Fund. Picture: Olivier Douliery/AFPIt expects the “war” phase of the pandemic to rage for up to six months before entering a “post-war recovery” when the epidemic is brought under control by vaccines but financial pillars will remain battered and bruised.
“If policies ensure that workers do not lose their jobs, renters and homeowners are not evicted, companies avoid bankruptcy, and business and trade networks are preserved, the recovery will occur sooner and more smoothly.”The initial expectation was the coronavirus would stall trading for a short period, resulting in a major hit to Australia’s gross domestic product in the second quarter, and then bounce back in the three months after.
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