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Flat White

Loosen corona restrictions or face a fearful future cost

29 April 2020

2:04 PM

29 April 2020

2:04 PM

If you want to know how much the coronavirus pandemic might cost, the International Monetary Fund’s recent world economic outlook is a good place to start.

Under a scenario in which the current quarter sees the worst of it for the world economy and a vigorous recovery starts in the September quarter, the IMF sees global GDP shrinking by 3% in 2020 as a whole.

This may not sound like much, but it is much worse than the GFC recession.

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