Jakarta, CNBC Indonesia – Recession and economic crisis are now the concern of all countries. Some countries are already in recession because of the Covid-19 corona virus. The IMF also issued a horrified prediction about the economic crisis.
At least six countries have fallen into recession. They are the US, Germany, South Korea, Hong Kong, Singapore and France. These countries experienced a recession because of two quarters of economic growth contracting or minus in two kurtal.
For example the US economy minus 32.9% for the April-June period. This contraction is much sharper than the first quarter which recorded minus 5%. Economic growth is negative because all economic engines are not moving. Corona stopped many sectors because a number of countries were implementing lockdowns.
Recession can not be overcome immediately then the country can fall into an economic crisis. The existence of this potential is voiced by the International Monetary Fund (IMF) in the outlook titled A Crisis Like No Other, An Uncertain Recovery.
The IMF estimates that the global economy will grow by -4.9%, 1.9 points lower than the IMF outlook in April 2020, which is -3%. In an interview conducted with its economists, the IMF also gave a lattice outlook would be very bad. The global economy is said to suffer the worst financial crisis since the Great Depression of the 1930s.
“The Covid-19 pandemic had a negative impact in the first half of 2020 than expected,” the agency said, quoted by CNBC Indonesia on Sunday (2/8/2020).
The IMF even named the current crisis as “Great Lockdown”. The institution even said that the crisis was unlike anything that had ever been seen in the world before.
The World Bank in its latest global economic outlook “Global Economic Prospects” on June 8 predicted the economy would shrink 5.2% this year. This institution said, the crisis at this time was the deepest recession since World War II.
“(Recession) is the deepest in developed countries since World War II and the first contraction of output in developing countries in the last six decades,” said the Director of the World Bank Group Prospects, Ayhan Kose.
Economic activity in developed countries is said to contract 7% by 2020. Because domestic trade and financial demand and supply are disrupted.
Emerging markets and economies (EMDE’s) are expected to contract 2.5% in 2020. This is the first contraction in 60 years where per capita income is expected to drop 3.6%.
“The crisis is long … and poses a huge global challenge,” said Vice President of the World Bak for Growth, Finance and Equitable Institutions Ceyla Pazarbasioglu. “The global community must unite for recovery, preventing more people from falling into poverty and unemployment.”
(roy/roy)
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