The International Monetary Fund (IMF) in its latest report has warned that the COVID-19 pandemic would cost a total of $28 trillion loss in outputs globally. In its flagship World Economic Outlook, the IMF revealed that although the decline in output was lower than expected, the pandemic would cost heavily on people. Calling the COVID-19 pandemic the worst crisis since the great depression, IMF chief Geeta Gopinath said that it would not only leave people unemployed, but also children deprived of education and much weaker investment.
However, it said that owing to a stronger performance in the second and third quarter, global growth is projected to be -4.4 per cent, an upward revision compared to the 5.2 per cent drop forecast during the summer. In addendum, the Washington-based organisation said that the pandemic had pushed the estimates of a rebound from 5.4 per cent to 5.2 per cent.
The cumulative loss in output relative to the pre-pandemic projected path is projected to grow from $11tn over 2020-21 to $28tn over 2020-25,” Gopinath said in a blog. “This represents a severe setback to the improvement in average living standards across all country groups.”
The global organisation also projected the Indian economy to contract by a massive 10.8 per cent this year as a result of the pandemic. However, in a piece of good news, the IMF in its report also asserted that the Indian economy will bounce back to 8.8% growth the next year and again become the fastest-growing emerging economy in the world, followed by China at 8.2%. The Reserve Bank of India (RBI) had earlier this month projected that the GDP would contract by 9.5 per cent in the current financial year amid disruptions caused by the coronavirus pandemic and it may turn positive in the last quarter.