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
-
Togbe Afede XIV lauds government’s $10bn ‘big push’ programme for boosting farm produce transport
17 minutes -
FDA urges consumers to prioritise safety when purchasing products during festive season
21 minutes -
President Mahama calls for single-digit interest rates on agricultural loans
35 minutes -
President Mahama urges Ghanaians in formal jobs to take up farming
44 minutes -
Farming interventions paying off, lifting incomes and food security, says Agric minister
60 minutes -
Gov’t pledges science-backed interventions in agriculture, says Agric minister
1 hour -
Ghana unveils $3.4bn plan to accelerate national clean energy transition
1 hour -
Interior minister urges security agencies to maximise use of new NSB regional command in Ho
1 hour -
Photos: Ghana celebrates 41st National Farmers’ Day
1 hour -
2025 Farmer’s Day: Farmers demand a 2% interest rate on loans to boost farming activities
1 hour -
Chamber of Aquaculture Ghana calls for strong public-private partnerships to unlock finance and transform the sector
2 hours -
Lions celebrate International Volunteer Day with over decades of service and impact
2 hours -
3 dead, dozens injured in Mampong Abuontem head-on collision
2 hours -
MoFFA shuts down several Eastern Region mortuaries over poor sanitation, non-compliance
2 hours -
Domestic violence case: John Odartey Lamptey remanded over alleged brutal assault on wife
3 hours
