New IMF forecast: Even deeper recession, slower recovery

The international financial organisation anticipates an even deeper recession and a slower recovery from the consequences of the coronary pandemic than the one predicted in April.

Coronervirus' pandemic has halted the world economy, which has helped sustain the virus and saved lives, but has caused the worst recession since the Great Depression of the 1930s, according to the IMF's latest analysis.

Over 75% of the countries are now removing the ban on movement, even though the number of patients is increasing again. Some countries are experiencing a slight economic recovery. However, in the absence of a medical solution, recovery force is very uncertain and the impact of pandemic on different economic sectors and countries is uneven, according to the IMF report.

The new IMF analysis envisions an even deeper recession this year than the one predicted in the April report. GDP decline on the global level is estimated at 4.9 percent or 1.9 percent worse than the data from the previous analysis, while recovery for 2021 will be smaller, or 5.4 percent in the previously projected 7 percent.

The IMF says the global economy has not yet emerged from the worst period, which decision-makers must be vigilant, and regulate measures under new circumstances, and that the economy needs fiscal and monetary support, while maintaining the transparency and independent functioning of central banks.

IMF analysts also point to the risks posed by new epidemic waves, which could reduce mobility and consumption, leading back to instability in public finances and new loans.