
Audio By Carbonatix
The International Monetary Fund (IMF) said that the global economic outlook has worsened since its latest forecast three weeks ago and the world can expect more waves of financial market turbulence.
Developing nations’ external financing needs probably will be far above the $2.5 trillion that the IMF has previously projected, chief economist Gita Gopinath said in a webcast Thursday hosted by the Council on Foreign Relations.
The fund will need all of its $1 trillion in current lending resources and isn’t being shy about telling countries how much support is needed, Gopinath said.
“We know this crisis isn’t going away anytime soon,” Gopinath said. “Things can get worse. The health crisis has not been solved.”
The IMF said in the World Economic Outlook report on April 14 that global gross domestic product will decline 3% this year. That baseline scenario assumed that the pandemic fades in the second half of this year and that containment measures can be gradually wound down, a scenario that looks less likely now, Gopinath said.
The IMF’s April outlook also sketched out three alternative scenarios in which the virus lasted longer than expected, returned in 2021 or both. A lengthier pandemic would wipe 3% off GDP this year compared to the baseline, while protraction plus a resumption next year would mean 8% less output than projected in 2021, the Fund said.
On the same webcast, Kenneth Rogoff, a professor at Harvard University professor and one of Gopinath’s predecessors at the IMF, said that some countries will face a solvency crisis and will need debt writedowns rather than just postponement of payments.
Latest Stories
-
Ghanaians should accept Queiroz as a defensive coach – Kojo Addae-Mensah
4 minutes -
Ghana introduces New Basic School Curriculum with Coding, AI and Local Language focus
8 minutes -
Asamoah Gyan visits John Laryea ahead of August 15 fight against Adrian Robledo Maximiliano
9 minutes -
Mid-Year Budget must outline plan to sustain economic gains – Prof Bokpin
9 minutes -
‘Dangerous and baseless’ – Stephen Amoah slams Global InfoAnalytics MPs performance poll
10 minutes -
Further infant remains uncovered at former mother-and-baby home
25 minutes -
When thousands can’t opt out: The broken system behind national service cloth deductions
25 minutes -
Meet 2026 jury for Blackstar International Film Festival
29 minutes -
Mahama calls on Africa to manufacture its own medicines to end import dependence
31 minutes -
Carlos Queiroz could join CAF review after Ghana’s World Cup campaign
37 minutes -
Mahama, WHO chief call for stronger pharmaceutical production to reduce Africa’s health dependence
39 minutes -
Fondation Ahobah feeds more than 200 children, donates supplies to Kasoa orphanage
41 minutes -
Sammy Crabbe urges NPP unity as Chairman Wontumi faces 20-year jail term
55 minutes -
Asante Kotoko set title target for Tinkler ahead of new GPL season
58 minutes -
Godfred Dame argues Hanan Abdul-Wahab’s Buffer Stock charge sheet is defective, seeks dismissal
1 hour