IMF chief says global economy to lose $12.5 trillion in output by 2024 due to COVID-19

The coronavirus pandemic would cost the global economy $12.5 trillion in output by 2024, according to the managing director of the International Monetary Fund (IMF). On Thursday, Kristalina Georgieva stated, “The world economy between now and 2024 is losing USD 12.5 trillion in output because of COVID. And we are going to actually update this number revising it upwards because of Omicron," as per Sputnik.

These comments of the IMF director came after a new United Nations World Economic Situation and Prospects (WESP) 2022 report released last week which revealed that after a robust rebound in 2021, the global economy is expected to grow by just 4% in 2022, while 3.5% the following year. The report also stated that there were substantial obstacles to the world economy which were posed by new waves of COVID-19 infections comprising chronic labour market issues, persisting supply-chain challenges as well as growing inflationary pressures. According to the report, in 2021, the economy grew by 5.5 percent.   

The pace for econimic growth had slowed significantly by the end of 2021

Furthermore, the report noted that the impressive rebound in 2021 was led by strong consumer expenditure and significant investments, with goods trade exceeding pre-pandemic levels. However, by the end of 2021, the pace for growth had slowed significantly, particularly in China, the United States, and the European Union, as the benefits of monetary and fiscal stimulus began to fade and substantial supply-chain disruptions arose. In many nations, rising inflationary pressures are providing new threats to recovery. 

In addition to this, previously in December 2021, Kristalina Georgieva had called for global collaboration to limit the COVID-19 pandemic and aid economic recovery and growth. During the time when the new COVID-19 strain, Omicron had just expanded to over 40 nations, Georgieva went on to explain that the global economy had continued to recover, however, there have been several hazards left, including the pandemic's unpredictable path and the outlook on inflation.  

It is to mention that the IMF's policy aims include vaccination the globe, adjusting plans to the pandemic and economic shifts, and speeding up reforms to create inclusive and sustainable economies. Furthermore, in consideration of the results of the WESP 2022 report, UN Secretary-General Antonio Guterres stated that the global community must implement targeted, coordinated actions to reduce global inequality disparities. 

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