The IMF warned to end economic expectations and the crisis, 'contrary to what the world has seen'

The IMF forecasts a 3% contraction for the world economy in April 2020.

The current crisis is "no different from anything in the world."

The fund said the service industry was more affected than productivity - indicating a shift from previous crises, where manufacturing operations were most affected by a lack of investment.

The global economy is in a significant contraction than the IMF said in April, the chief economist of the company said on Tuesday.

The IMF said the world economy was facing the worst financial crisis since the Great Depression of the 1930s when European countries were in the first week of lockdown. At the time, it predicted a contraction of up to 3% by 2020.

Now, even though some economies have rebounded, the fund warns that the decline could be even worse.

"For the first time since the Great Recession, both developed and emerging market economies will be in recession by 2020. The upcoming June World Economic Loop update shows a negative growth rate worse than ever," IMF chief economist Geeta Gopinath said in a blog post.

The current crisis, called the Great Lockdown, is "very different from what the world has ever faced," the fund said.

The epidemic began as a health emergency, but soon the economic crisis arose due to necessary social-distance measures and travel-limiting measures.

Many countries have begun lifting the lockdown, but this has proved to be a challenge and in some cases, the process has been slow. This comes as some countries are increasingly linked to Covid-19 cases.

More than 8 million virus infections are diagnosed worldwide. According to the data of the Johns Hopkins University, United States, Brazil, Russia, India, and the UK, There are currently five countries with the highest number of cases.

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The IMF said the services industry was more affected by manufacturing than it was - indicating a shift from previous crises, where manufacturing operations became more difficult due to a lack of investment.

As a result, Gopinath said: "There is a sharp rise in demand from pent-up customers following the previous crises."

However, the health crisis may lead to changes in consumer spending as people save more.

Equity markets have reached new heights when economies, governments, health services, and citizens are still emerging from the epidemic. In fact, the S&P 500 has recovered most of its losses since the onset of the crisis. At the same time, amid the central bank intervention, bond markets have been somewhat muted.

"With few exceptions, the rise in sovereign spreads and the depreciation of emerging market currencies is smaller than what we saw during the global financial crisis. Tuesday.

As a result, it warned that if health or economic conditions deteriorate, there could be a “sharp recovery” in public markets.

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