A potential new wave of the novel coronavirus outbreak in 2021 could reduce global economic growth to naught, International Monetary Fund (IMF) Chief Economist Gita Gopinath said on Wednesday following the release of the updated World Economic Outlook
WAHINGTON (Pakistan Point News / Sputnik - 24th June, 2020) A potential new wave of the novel coronavirus outbreak in 2021 could reduce global economic growth to naught, International Monetary Fund (IMF) Chief Economist Gita Gopinath said on Wednesday following the release of the updated World Economic Outlook.
"When we have looked at the impact of a second wave that hits in, say, early 2021- in that case, instead of growth of 5.4 percent it would be zero percent," Gopinath said.
The IMF chief economist warned that such a development would be a dramatic hit for the global economy.
Gopinath said the novel coronavirus crisis is not over and the world could potentially face an increase in the number of infections.
However, she did not forecast imposing lockdowns as was done in the first half of 2020 and brought the world economy to a halt.
IMF forecasts in its updated World Economic Outlook that economic growth will increase to 5.4 percent.
