The global economy is headed for a recession because of COVID-19.
In a new World Economic Outlook report, the International Monetary Fund predicts the 2020 recession will be worse than any downturn since since the Great Depression.
The economy is expected to shrink by 3% in 2020, but rebound and grow by 5.8% in 2021, but only if economies open back up for business in the next couple of months.
If the pandemic stretches into the second half of the year, the IMF warns the recession could bet "twice as severe" and the hoped for rebound "could fail to materialize."
The IMF forecasts U.S. economic growth will contract around 6% for the year, and by 7.5% in the euro area.
The IMF is monitoring the pandemic and adjusting economic policies accordingly.
In a joint statement, the fund says they will work on restoring economic growth, protecting jobs and reinforcing the global financial system.
As governments decide when to lift restrictions and 're-open' their communities, experts say economic recovery will be slow, while people gain enough confidence to resume normal activities.
The IMF says it’s important for countries to invest in their health systems and their workers during the lockdown, for a smoother transition after the pandemic ends.
The fund also warns protectionism can slowdown economic recovery.
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