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Market Digest Nigeria

Economy

Global Economy to contract 1st time in 11 Yrs on Virus Impact- IMF

The global economy is expected to post its first negative growth in 11 years in 2020 due to the fallout from the coronavirus pandemic, IMF Managing Director Kristalina Georgieva said Monday.

The outlook for global growth for 2020 is “negative,” the first contraction since the negative growth of 0.1 pct in 2009 blamed on the global financial crisis triggered by the 2008 collapse of U.S. investment bank Lehman Brothers, she said in a statement.

The IMF is slated to release its updated global economic outlook in April, after the Washington-based institution lowered its world growth estimate for 2020 by 0.1 percentage point from its January projection to some 3.2 pct.

As major countries, such as the United States and Japan, look certain to suffer slowdowns due to the coronavirus outbreak, the global economy may post sharp negative growth, analysts said. The IMF chief released the statement after finance ministers and central bank chiefs of the Group of 20 advanced and emerging economies held an emergency videoconference on Monday to discuss the pandemic’s effects on the global economy.

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