This can only be news to the IMF.
Citing a collapse in consumption and other metrics, the IMF reduced it’s already gloomy global economic outlook.
IMF chief economist Gita Gopinath said global GDP could contract 3% or more.
“If anything, it looks like the outlook will worsen”.
“No country is being spared, and the numbers that you see coming in are historical lows.”
Gopinath commented that recovery is possible if there is enough testing and information available for contact tracing. She pointed to a rebound in China, where external demand remained weak but domestic demand was picking up.
She then pointed to what will likely be an economic bloodbath in emerging economies. The IMF originally expected such countries to need about $2.5 trillion, but now thinks they will need much more. When they come knocking on the door of the IMF, the largest member countries, such as the U.S., will be asked to allow the bank to create money through fractional lending.
That might not end well, as many such countries would seem just as likely to default as to repay.