Owing to the current pandemic, the International Monetary Fund (IMF) has expected an even worse recession in the global economy.
According to the details, in her recent statement, IMF chief economist Gita Gopinath said the pandemic-triggered financial crisis was more global and playing out differently than previous crises, with the services sector hit harder than building in both advanced and emerging market economies, and low inflation across the board.
IMF Chief Economist Gita Gopinath said in many countries there were signs of early recovery that were reopening their economies, but new waves of coronavirus infections and re-imposed lockout measures also feigned risks.
Gopinath said that depressed market demand could drive a faster turnaround in hard-hit services, but this has not been verified as customers could adjust their buying behavior to reduce social contact, and uncertainty could cause higher savings.
He said the longer-term effect on tourism-dependent economies is a major concern and policymakers should adopt policies to redeploy workers from declining industries to those with stronger prospects.