AP Economics Writers WASHINGTON (AP) – Beaten down by the coronavirus outbreak, the world economy in 2020 will suffer its worst year since The Great Depression of the 1930s, the International Monetary Fund says.
The IMF expects the global economy to shrink 3% this year before rebounding in 2021 with 5.8% growth. It acknowledges, though, that prospects for a rebound next year are clouded by uncertainty.
Here in Texas, weeks into an economic downtown triggered by the the virus, Texas Comptroller Glenn Hegar is now saying the words that he was apprehensive about using initially:
“I know that we are unfortunately in a recession. I just don’t know how deep or wide it’s going to be.”
Hegar also told the Texas Tribune:
“The Texas economy has gone from “very strong” to a being in a recession in a matter of weeks. Two weeks ago, we had unemployment claims of roughly 16,000 people. … That number went up last week to 276,000,”
Meantime, the IMF’s assessment represents a breathtaking downgrade. In its previous forecast in January, before COVID-19 emerged as a grave threat, it had forecast moderate global growth of 3.3% this year. But measures to contain the pandemic have suddenly brought economic activity to a near-standstill across much of the world.
In the U.S. coronavirus cases now stand at 587,173; 23,644 people have died, and 36,948 have recovered.
(Copyright 2020 WBAP/KLIF 24/7 News. This report contains material from the Texas Tribune and Associated Press)
